PRESS RELEASE

Legal reforms: Antitrust - several measures restricting competition in the draft law under scrutiny by Chamber of Deputies

The proposal contradicts the Decree of the President of the Republic (DPR) on professions recently launched by the Government.  It re-introduces de facto tariffs and lengthens the time required for young people to enter the profession.

The proposed legal reform released by the Commissione Giustizia della Camera (Justice Commission of the Chamber of Deputies) re-introduces several measures limiting competition between lawyers, contradicting the Decree of the President of the Republic (DPR) on professions recently launched by the Government. That is the verdict of the Antitrust Authority in a judgement signed by the president Giovanni Pitruzzella and sent to the Presidents of the Senate and the Chamber of Deputies, the Prime Minister of Italy and the Ministry of Justice.

The most worrying aspects in competition terms are connected to the rules on payments, which re-introduce de facto tariffs and the overly long traineeship, limiting the possibility for people to enter the profession.

In particular:

• De facto tariffs are re-introduced, with a quotation only available at the request of the client.

With regard to agreements on payments from clients, the proposed law would make a quotation obligatory only at the request of the client, and it would not be required in written form in any case. Moreover, in the event that there is no agreement, payment would be determined using the parameters established by ministerial decree. This implies a return to uniform pricing, thus undermining the effects of liberalisation.

• The rules on traineeships create obstacles to the profession.

The new measures regarding access to the profession make embarking on a legal career more difficult, creating new obstacles and limitations in pursuing a traineeship. Whilst the decree on liberalisation reduced the length of these traineeships to 18 months, with six months completed during the time at university, this has been changed back to two years.

• Limits and bans on advertising are planned.

The proposed law uses the terms “information” or ‘communication’ instead of “advertising”, leading to doubts as to whether advertising is permitted. Even the ‘communication’ available to professionals will have bans (on comparative advertising) and limits imposed on it. In particular, the involvement of the Consiglio Nazionale Forense (National Bar Council/CNF) in determining the criteria for types of advertising seems inadvisable.

• A new ‘specialist’ role will be introduced, which will only be granted by the Consiglio Nazionale Forense (National Bar Council/CNF).

The Authority is concerned that the issuing of this title is based on checks that do not always ascertain the level of professional experience. Optional specialisation courses may be preferable, as they would ensure that everybody has the chance to acquire the title and would allow the development of an open system in which specialisation can stem from any professional experience, study or research.  The CNF’s intervention, whilst still under consultation, on the procedure for specifying recognised specialisations using ministerial regulations should be treated with caution.

• Jobs considered incompatible with being a lawyer are to be widened.

According to the Authority, preventing lawyers from carrying out other self-employed or employed work, including part-time work, is neither necessary nor proportionate with the aim of guaranteeing the independence of lawyers or protecting the integrity of the profession. Nor does the limit on subscriptions to other professional registers imposed on lawyers seem justified. Potential conflicts of interest arising from carrying out various professional activities can be resolved by providing proportionate tools that place fewer restrictions on free economic initiative. These could include, for example, professional conduct rules and the consequent obligation to refrain from carrying out conflicting activities.

Rome, 10th August 2012