AGCM

The Authority, which believes a review of regulations governing the liberal professions is urgently needed so as to align professional activities with the new economic realities and the European regulatory framework, reiterates its position on certain aspects which are of fundamental importance to competition and which must be taken into consideration in reordering the system and regulating the professions.  

In the first place, judging by certain government amendments there is no sign of a rethinking of the role of the Orders, whose present functions are extended. Indeed, the Authority observes that bringing certain professions, which up till now have operated in a free market, under the aegis of professional Orders, besides unjustifiably extending the role of the Orders themselves, leads to a significant reduction in competition by limiting the entry of new operators and creating reserved activities.  

A further restrictive effect would seem to be created by the application of scale fees for the payment of services. In this regard, the Authority believes that establishing minimum or fixed fees is not only not in the public interest, but does not guarantee quality in the services rendered. Professional fees should not be a function of the professional body’s wishes, but should be freely fixed by the individual professional.

Furthermore, there is no apparent justification for banning comparative advertising. On the contrary, where the advertising message compares representative and verifiable aspects, it can facilitate the flow of information to consumers. In this regard, the European Commission too, in its Report on Competition in Professional Services of February 2004, determined that comparative advertising dealing with professional services was good for competition. More generally, the Authority finds that advertising covering the types, characteristics and costs of services offered by professionals is an important factor in helping to overcome part of the asymmetry of information.

With regard, too, to the regulation of examiners at public examinations for professional licensing, the Authority again draws attention to the fact that the preliminary survey of Professional Orders and Colleges already stressed the need to limit the presence amongst the examiners of representatives of the Orders.

Lastly, the Authority considers entirely inadequate the provisions intended to guarantee the exercise of regulated professions by corporate entities, in particular to the extent that they seem to exclude even minority shareholdings in such firms by persons who are not members of the profession.

At the same meeting, the Authority drew Parliament’s attention to several possible ways competition may be impacted by the legislative decree which the Government is about to adopt, having to do with the Creation of an Order of Chartered Accountants and Bookkeepers.  

The Authority reiterates that although the creation of a single roll of chartered accountants and bookkeepers is needed for the rationalization of professional services, there may be negative consequences from reserving exclusive areas of activity for chartered accountants and bookkeepers.
Such exclusivity would seem to preclude the exercise of certain functions by persons already operating in this sector who are not members of these professions, and could thus restrict competition, leading to reduced efficiency in the provision of these professional services, to the detriment of users.


Rome, 27 April 2005