REPORT ON NOTARIES' CONVEYANCING SERVICES
PRESS RELEASE
PRESS RELEASE
NOTARIES: ANTITRUST REJECTS MAXIMUM EARNINGS LIMIT. THE PLAN, IF PUT INTO EFFECT, COULD HARM COMPETITION
Should this norm be included in the ethical code of conduct, the Authority will consider activating its investigative powers. Report sent to Ministry of Justice and National Council of Notaries. In Italy prices are markedly higher than elsewhere for notaries' real estate conveyancing services. Tenth place out of 16 European countries in terms of quality.
The norm defined by the National Council of Notaries (CNN) that sets a maximum threshold for notaries' earnings, if adopted, could constitute an anti-competitive arrangement, not commensurate with or justified by the pursuit of a common interest such as preserving the quality of notarial services.
So writes the Italian Competition Authority, in a letter sent to the Ministry of Justice Angelino Alfano and to the National Council of Notaries. The Antitrust Authority warns that it will consider bringing its own investigative powers to bear if the provision is included in the notaries' professional code of conduct.
The norm, also proposed on numerous occasions by a number of District Councils of Notaries, would set a maximum threshold for fee earnings, fixed for each district based on the parameter of twice the average in the district in the previous year: notaries who breached the limit by earning more would be subject to inspections and checks carried out, amongst others, by other notaries operating in the same district.
In the Authority's view, the proposed mechanism could amount to market sharing in notarial services among professionals operating in the same district, to the detriment of the most efficient notaries. The inspections, carried out by competing colleagues, would also involve the acquisition of detailed economic data which is extremely sensitive from a competitive point of view, such as information about clients, prices and the fees actually charged.
In the Authority's view, if the aim is to guarantee the quality of services as the CNN states, controls must be carried out by third parties and on those notaries who are the subject of specific detailed complaints from their clients.
In its letter, the Authority recalls the results of a study carried out for the European Commission. The analysis by the Centre of European Law and Politics (ZERP) at Bremen University, ("http://ec.europa.eu/comm/competition/sectors/professional_services/studies/studies.html") shows that in countries where, as in Italy, regulation is most restrictive, the notarial fees for real estate conveyancing are markedly higher, while those same countries do not demonstrate higher levels of quality in the services offered. Italy is placed tenth out of 16 countries examined in terms of service quality.
Rome, 29 May 2008