CLEAR News - Spring 2002
International News
European Court of Justice Rules Against Multidisciplinary Practices in Dutch Case
Finding against Price Waterhouse and Arthur Andersen, the ECJ noted that the Dutch ban was a restriction on the ability to provide services, but held that this was justified in the public interest. The Court made clear that despite the effect on competition, the Dutch regulation was deemed necessary to allow the proper practice of the legal profession.
Further links:
The ruling in full:
European Court of Justice:
http://www.curia.eu.int - ECJDutch Bar Association -
http://www.advocatenorde.nl/
Failure to Implement Lawyers' Establishment Directive Prompts European
Commission to Act Against Five Member States
December 2001 saw the
European Commission (EC) reinstitute infringement proceedings against
Belgium, the Netherlands, France, Ireland and Luxembourg after they
were adjudged to have failed to implement the lawyers' establishment
Directive. This Directive effectively facilitates the free movement of
lawyers throughout the European Union (EU) and was to have been
implemented in March 2000. However, since a number of the 15 Member
States had failed to enact the necessary legislation, and Belgium, Luxembourg
and the Netherlands were judged to be taking necessary steps, no
action was taken. However, by December the decision was made by the EC
to proceed with action against the five states.
Further links:
Services and Establishment in the EU -
European Commission -
http://europa.eu.int/comm/index_en.htm
European Court of Justice Rules on Effect of Professional Associations
on Competition
In a preliminary ruling
on November 29, 2002 the European Court of Justice (ECJ) ruled on the
way Article 81 of the European Union (EU) Treaty (relating to
anti-competitive behavior) affects those working in a professional
activity. The ruling stemmed from an earlier ruling in an Italian
court relating to architects in which the claimant had applied for an
order against the respondent for payment of professional fees. The
professional body concerned had endorsed the invoice but the
respondent then petitioned to have the order set aside on the basis
that it was void as it contravened Article 81 and therefore
constituted anti-competitive behavior.
In its ruling, the Court dismissed the claim that the setting of minimum tariffs was in contravention of Article 81, stating that each practitioner is able to set a relevant fee and this cannot be deemed to lead to anti-competitive agreements. The earlier case in the Italian court had also questioned whether Article 81 should prevent national legislation that permits members of a profession to set, at their own discretion, the charges for the services that they perform. Likewise, the ECJ felt that this did not constitute anti-competitive behavior.
This case is one of a number being heard by the ECJ that relate to Article 81 and its effect on the professions. In addition to the NOVA case (the Dutch Bar Association - see above), a further Italian case regarding whether or not fixed fees are acceptable will also be heard and a ruling issued.
Further links:
The ruling in full -
European Court of Justice:
http://www.curia.eu.int - ECJ