EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 5.9.2005 
SEC(2005) 1064 
  
COMMISSION STAFF WORKING DOCUMENT 
Progress by Member States in reviewing and e liminating restrictions to Competition in 
the area of Professional Services 
  
{COM(2005) 405 final} 
 
EN 2   EN Table of Contents 
1. Introduction ................................................................................................................... ..... 3  
2. Economic analysis: better de fining the public interest....................................................... 3  
2.1 The characteristics and needs of business users........................................................... 4 2.2 The characteristics and needs of households ............................................................... 4 2.3 The characteristics and n eeds of the public sector....................................................... 5 
2.4 Evidence from available data....................................................................................... 6 2.5 Key finding of analysis ................................................................................................ 7 3. Activities in 2004/05 by the Commission a nd national competition authorities ............... 7  
3.1 Commission activities .................................................................................................. 7 3.2 National competition authorities activities................................................................... 8 4. Progress by national regulators and professional bodies to reform ................................. 10  
4.1 Entry restrictions and reserved tasks.......................................................................... 10 4.2 Business structure regulation ..................................................................................... 16 4.3 Fixed prices ............................................................................................................... . 18 
4.4 Recommended prices ................................................................................................. 20 4.5 Advertising restrictions .............................................................................................. 21 5. Enforcement by the Commission, national compet ition authorities a nd national courts. 22  
6. Conclusions .................................................................................................................... .. 24 
 
EN 3   EN 1. I NTRODUCTION  
1. The Commission Report on Competition in the Professions published in February 
20041 (hereafter referred to as the ‘2004 Repor t’) targeted six professions - lawyers, 
notaries, engineers, architects, phar macists and accountan cy (including the 
neighbouring profession of tax advisers). This Report provid es a detailed outline of 
progress made during 2004/05 by Member St ates in the review and removal of 
“unjustified restrictions”2 on competition in these six professions. Section 2 deepens 
the economic analysis of the Commissi on’s 2004 Report. Section 3 explains the 
activities carried out by the Commission and national competition authorities. Section 4 examines the progress made in  eliminating, or reviewing unjustified
3 rules 
and regulations, in the five main categ ories of restriction featured in the 
Commission’s 2004 Report (i) fixe d prices, (ii) recommended prices, (iii) advertising 
regulations, (iv) entry re quirements and reserved ri ghts, and (v) regulations 
governing business structure and multi-discip linary practices. Section 5 relates recent 
cases carried out by the Commission and w ithin the European Competition Network. 
2. ECONOMIC ANALYSIS : BETTER DEFINING THE PUBLIC INTEREST  
2. The Commission concentrated on a limited number of professions  in the 2004 Report 
and its analysis considered the markets for each of these professi ons as a whole with 
no attempt to differentiate the different  types of markets and actors involved. 
Following further reflection and discussion with professionals, users and Member 
States (competition and regulatory author ities), the Commission has come to the 
conclusion that it would be useful to refine and deepen  this analysis and, in 
particular, give further consideration to what is meant by the public interest in 
different markets. This would facilitate  a better understandi ng of the interplay 
between supply and demand for each profe ssional service under consideration. This 
section does this by identifyi ng in general terms the diffe rent groups who are buying 
or using professional services, and then considering more precisely how existing 
regulatory practice impacts on these groups. 
3. In general, the users of professional serv ices can be categorised into three broad 
groups or headings: (i) busine ss, (ii) the public sector, a nd (iii) households. Of these, 
some professional services will be requi red only by business and the public sector 
(e.g. most engineering services), and othe rs only by private house holds (e.g. services 
                                                 
1 The Report is available at: 
http://www.europa.eu.int/comm/ competition/liberal_professions/final_communication_en.pdf  
2 In the 2004 Report, the Commission suggested that a proportionality test should be used to assess to 
what extent anti-competitive professional regulations a nd rules truly serve the public interest and can be 
objectively justified. The 2004 Report suggested that  for this purpose it would be useful that each rule 
had an explicitly stated objective and an explanation of how the chosen regulatory measure was the 
least restrictive mechanism to effectively attain the stated objective. The Commission invited all to work in partnership – regulatory authorities in the Me mber States and professional bodies - to review 
existing rules taking into consideration whether those rules are necessary for the public interest, whether 
they are proportionate and whether th ey are justified. For the purpose of this Report, those restrictions 
that do not meet the proportionality test, as suggest ed in the 2004 Report, ar e called ‘unjustified’ or 
‘disproportionate’. 
3 As defined in footnote 2 above. 
 
EN 4   EN supplied by pharmacists). In many other cas es the same service is required by all 
users, but with differing levels of comple xity (e.g. real estate  and tax consultancy 
services). 
2.1. The characteristics and needs of business users 
4. Big business normally requires a service that is tailored to their needs. This requires 
flexibility and personalised attention by serv ice providers. Usually contracts are large 
and complex and negotiation covers not only pr ice, but also quality and service level. 
Fixed prices or fee scales ar e therefore ofte n less important. 
5. It is less clear how small business fits into this picture and whether it is more 
comparable to big business or private hous ehold users. On the one hand, while small 
businesses might not have enough internal expe rtise to be consider ed ‘expert’ users, 
they are nonetheless repeat users of professional servi ces and should be able to 
reduce the information asymmetry. On the other hand, they do not have the negotiating power of big business. Further econo mic analysis is needed to consider in 
more detail the needs of small business. 
6. This leads to the broad conclusion that the issues to be considered in analysing the 
public interest in terms of business users may not so much be linked to the typical 
argument of asymmetry of information, but rather to ‘flexibility’ or ‘innovation’ 
arguments. Business users want flexibility. This may include outsourcing, or undertaking in-house, certain categories of activities, and also being able to choose 
and mix service providers. There is also a demand for more tailored services, and 
given the possibility, professi onals would also likely find innovative ways of meeting 
their needs. To make this possible certain regulatory restrictions may need to be 
removed. It may also call for controls to maintain independence and avoid conflicts of interest; such conflicts could occur when the same professional is providing 
services which should be independent of  each other (e.g. accountancy and audit). 
2.2. The characteristics and needs of households 
7. As a generalisation, households are cons idered as not requiring services in a 
continuous manner and can be characterised as one-off customers. One-off customers 
are primarily hindered by a lack of informa tion. They may indeed have difficulty in 
finding a good practitioner and assessing their quality. Consequently, to some extent 
it is reasonable to assume that asymme try of information will always remain a 
problem for this kind of customer. 
8. In trying to understand the view and needs of consumers, the Commission has started 
to talk to consumer associations specifical ly about the professiona l services sector. It 
has also had access to surveys carried out  by consumer organisations across Europe
4 
on the professions. 
9. From these contacts, it is clear that there is an asymmetry of information which 
makes it difficult for the consumer to choose a professional. This is often due to their 
not having the expertise, or access to information, to be able to gauge ex ante the 
                                                 
4 These covered the legal profession in Scotland; lawyer s in Italy and Belgium; notaries in Italy, Belgium 
and Spain; pharmacies in Spain, Scotland and Germ any; estate agents in Scotland and Belgium. 
 
EN 5   EN competency, experience and level of professi onalism of a practitioner. This difficulty 
is exacerbated by prohibitions or undue re strictions on advertising by professionals. 
10. Consumers are also particularly eager  to get information on the costs of a 
professional service ex ante - at the mome nt of giving the mandate - and lament the 
lack of its availability. In some cases cu stomers would like to know  the exact cost of 
a service in advance. This is often the rati onale given for using fixed prices, which it 
is argued allow ‘consumers to know in adva nce how much they will have to pay’. 
11. A problem which particularly worries consumers is the accountability of the 
professional and the procedure in case of conflict. This problem is complicated by 
the fact that a professional has an oblig ation as to the m eans employed, not an 
obligation as to the result achieved. In this  area consumer organisations believe that 
compulsory professional insurance should be viewed positively from the perspective of helping to protect both the professi onal and the consumer. They also regard 
qualitative entry controls as a way of safeguarding quality an d professionalism. 
12. In all of these scenarios, the key challe nge seems to be finding ways to address the 
existing or perceived information gap be tween the professiona l and the consumer, 
irrespective of the current regulatory framework. Consumers want more information in order to be able to make informed choices. This means finding new and better 
ways to give them more information about  services on offer and looking afresh at 
regulatory frameworks to see how this can be achieved.  
13. Other considerations raised in the consum er surveys relate to the need to ensure 
greater accessibility to pr ofessional services by the whole population. This argument 
is brought up particularly concerning access to legal advice and representation. 
2.3. The characteristics and needs of the public sector 
14. Finally, there is the public s ector. For the technical profe ssions (e.g. architectural and 
engineering services) the public  sector is often the main user. In general, the public 
sector buys services via public tenders. A provider is usually chosen under strictly 
defined procedures and is then paid by the public pu rse. To ensure proper 
accountability to the tax paye r, the procedures are cons equently more cumbersome 
than those used in the private sector. 
15. The public sector in many countries favour s the existence of fixed or recommended 
tariffs whether by law or as internal refe rence points. For example in some Member 
States, recommended architectural tariffs stil l exist only for public works. It is also 
true that the move towards market oriented mechanisms for provider selection in the public sector is relatively recent in some countries. It seems that a change of approach to public administration in genera l would be necessary to bring about the 
removal of much of the ex isting restrictive regulation. 
16. That said it is doubtful whether the public sector as a buyer needs a different method 
of assessing the public interest than that ca rried out for other users. In a context of 
competitive bidding for a public tender, the public sector could be considered as a repeat, informed customer, much the same as a business customer. 
 
EN 6   EN 2.4. Evidence from available data 
2.4.1. By type of client: Business, public sector and private households 
17. The following pulls together disparate data  from European and national sources to 
show the level of use of business services  by business, the public sector and private 
households. Table 1 gives an overview of these statistics for (i) the 
accountancy/audit, business and management consultancy sector, and (ii) technical 
service sector. It shows clea rly that the largest users in economic terms of business 
services in both sectors are business users. 
Table 1 
 Accountants and 
related activities AArrcchhiitteeccttss  aanndd  
rreellaatteedd  aaccttiivviittiieess 
BBuussiinneessss 8866%% 7722%% 
PPuubblliicc  sseeccttoorr  66%%  1155%%  
PPrriivvaattee  hhoouusseehhoollddss  88%%  1133%%  
Source: Eurostat, architectural and engineering activities and related technical consultancy, Pekka Alajääskö and 
Owen Blackburn, Statistics in Focus 11/2004, and account ing, book-keeping, auditing activities, tax consultancy 
and business and management consultancy, Pekka Alajääskö, Statistics in Focus 24/2004. 
18. In the legal sector too the majority of turnover of law firms is shown as coming from 
business. For example, a study by the Law Society5 of England and Wales reports 
that in a sample of 585 solicitors firms, 37% of gross fee income in 2001 was from 
private individuals, and 42% from the privat e sector and public sector organisations. 
A study carried out by INDECON6 for the competition authority in Ireland in 2003 
reports similar findings. It finds that th e average percentage of fee income from 
business clients for solicitors is 33%. In the case of barristers just under half of the fee income comes from business clients, wh ile for professional engineers the figure 
is 79% and for architects it is 66.7%. 
19. Professional associations also estimate th at their members work  mainly for business 
or the public sector ra ther than one-off users
7. 
2.4.2. By frequency of demand: Re peat vs. one-off consumers 
20. The INDECON report also has useful in formation on the frequency of use of 
professional services by cust omers. In the report business customers are represented 
through a survey of insurance companies and private households by a random sample 
of members of the public. It too shows th at business customers are by far the most 
                                                 
5 Law Society, Findings from the Law Society’s 2001 Business Survey, (2002). 
6 INDECON (2003) INDECON’s Assessment of Restri ctions on the Supply of Professional Services, 
prepared for the Competition Authority, Dublin, March 2003. 
7 The Architects Council of Europe estimates that th eir members work 40% for businesses, 40% for the 
public sector and 20% for private households. Engineers estimate that they work equally for the public 
and the private sector (but not for private households). German tax advisors estimated their clients to be 
75% business and 25% household. 
 
EN 7   EN frequent users. In the case of solicitors,  51% of private households had not used one 
in the previous five years8 and a further 33% not more than five times over that 
period, whereas for insurance companies the corresponding figures were 7.7% and zero. 69.2% of insurance companies had used solicitors more than twenty times in 
the previous year. In the case of barristers 98% of th e private households sampled 
had used a barrister less than five times in the previous five years, whilst 54% of the 
insurance companies had used a barrister more than twenty times per year. A study used by the Italian Antitrust Authority confirms these findings in the case of legal services
9: when individual citizens consult a la wyer, in the vast majority of cases 
(75%) it is a one-off consultation, while bus iness customers tend to consult lawyers 
on a continuous basis (68% of cases). 
2.5. Key finding of analysis 
21. A further differentiation of the markets of  professional services would allow a better 
identification of the public  interest involved and of  the degree of regulation 
indispensable to protect this. This can be arrived at by assessing what is needed for 
the different types of customer or user. Th e above analysis show s that one-off users – 
generally individual customers and households  - may have a greater need of some 
carefully targeted protection (e.g. price regulation may be needed for the lower paid 
to ensure proper access to legal advice and re presentation in certain areas of law). On 
the other hand, the main users of business se rvices – business and the public sector – 
may have no, or little, need given that they are better equipped to choose providers that best suit their needs. The position of small business users is  however not entirely 
clear and further economic analysis is n eeded to arrive at a conclusion on this. 
3. A
CTIVITIES IN 2004/05  BY THE COMMISSION AND NATIONAL COMPETITION 
AUTHORITIES  
3.1. Commission activities 
22. During 2004/05 the Commission invited the European professional bodies of 
lawyers, notaries, accountants, tax advisers , architects, engineers and pharmacists to 
bilateral meetings to discuss the justif ication of existing pr ofessional rules and 
explore what can be done to make them less restrictive of competition. The level of receptiveness to reform varied between the professional bodies depending on how open and de-regulated the profession already was; some could see the benefits while 
others saw reform as a threat rather  than an opportunit y. Professional bodies 
representing the legal, notarial and pharm acy professions particularly had little 
appetite for change. 
23. The Commission started to establish a st ructured dialogue with national regulatory 
authorities, especially in countries wher e the professions are heavily regulated. A 
start was made on the occasion of the European Competition Network Sub-Group 
                                                
 
8 This contrasts with a Law Societ y survey of the public in England & Wales published in 1989 which 
reported that only 32% of the adult population had consulted a solicitor in the previous 3 years. 
9 LA REGOLAMENTAZIONE DEI SERVIZI PROFESSIONALI ASPETTI SETTORIALI, Autorità 
Garante della concorrenza e dei mercati. 
 
EN 8   EN meeting on 14 October 2004, which brought t ogether representa tives of national 
competition and regulatory authorities. 
24. The Commission also held bilateral meetings  with the regulatory authorities in some 
Member States (Austria, Germany, Hunga ry, Italy, Poland, Portugal and Spain). 
These meetings have provided an excellent opportunity to discu ss specific national 
circumstances and explore possible ways to bring about change, as well as share best 
practice. 
3.2. National competition authorities activities 
25. National competition authorities have been ac tive and a step change  has been seen in 
their activity with the majority reporting be ing engaged in work in this field during 
2004/0510. Competition authorities in Denm ark, Ireland, Netherlands and the UK 
have well established work programmes in th is sector - Denmark as part of a wider 
governmental regulatory reform programme . Authorities in Belgium, Estonia, 
Hungary, Poland and Slovenia have also initia ted structured work to bring reform to 
the professions.  
26. A range of work has been undertaken, incl uding bilateral discus sions with national 
regulatory authorities and pr ofessional bodies, and the is suing of opinions on draft 
legislation, which contain provisions li kely to be restrictive of competition. 
Competition authorities have also carried out stocktaking exercises and sector studies. The latter include studies car ried out by the Danish, Irish and UK 
competition authorities covering a range of different professions, including the legal profession, engineers, ph armacists and architects
11. The Polish competition authority 
produced a report aimed at highlighting f actors that impede the development of 
competition in a number of professions. Th e Portuguese authority has undertaken a 
detailed study of the notary’s profession si nce its privatisation in 2004 to identify any 
factors restricting competiti on and is currently in the process of producing a report to 
the government with proposals to remove or  amend the restrict ions identified. The 
Netherlands has concluded a detailed stoc ktaking exercise on ru les adopted by the 
professional bodies of lawyers, notaries , accountants and architects, and is now 
consulting on its findings. The Belgiu m authority is al so undertaking a 
stocktaking/investigation into rules exis ting in a range of professions, including 
lawyers and notaries, and the Czech Re public reports having undertaken a 
stocktaking exercise of rules in six prof essions and consulting a range of national 
regulatory authorities.  
27. Cyprus reports having informal bilateral di scussions with regulatory authorities, and 
Greece have been in contact bilaterally w ith the professional bodies, and the national 
regulatory authority, with re sponsibility for the legal and notarial professions. 
Germany, Italy and Hungary have met w ith various regulatory authorities and 
professional bodies to draw th eir attention to restrictive rules and laws and promote 
change. Following discussions, Italy has been successful in  getting the professional 
                                                 
10 Information on advocacy and enforcement activity by national competition authorities was collected via 
questionnaires. Responses have not  yet been received from all national competition authorities and this 
may mean that the information presented is incomplete in some cases and does not reflect all relevant 
activity. 
11 Other professions such as dentists and real  estate agents have also been targeted. 
 
EN 9   EN bodies for architects and notaries to review  their rules on advertising. Finland wrote 
to a range of actors to flag the findings  of the Commission’s 2004 Report and seek 
views. Belgium has reviewed certain ethical  rules issued by th e accountancy and tax 
advisers’ professional body for compliance with competition law. 
Examples of analytical studies in the sector of professional services 
Polish study12 
In the wake of the Commission’s 2004 Report, the Polish competition authority underto ok a detailed study into 
restrictions existing in five professions - barristers (a dvocates), legal advisers, notaries, pharmacists and tax 
advisers. The study gives a useful in sight into the structure and regulati on of the professions in Poland. Its 
objective was to highlight the factors that hinder the development of competition in the sector. The overall 
conclusion was that the regulation of the professions in Poland was excessively restrictiv e, especially in the field 
of legal services. Practices found included barriers to entry, price fixing or recommended pricing, advertising 
prohibitions and business structure restrictions. The study concluded that many of these were often 
disproportionate, unjustified and unnecessary to pr otect the public interest. The study was published in  May 2004. 
Consideration is currently being given to extending the study  to include other professions covering the real estate 
sector, dentists and others yet to be decided.  
Irish study on the legal profession13 
The Irish competition authority published its preliminar y report on competition issues associated with legal 
services in Ireland on 24 February 2005. The report finds t hat the legal profession is permeated with “unjustified 
and disproportionate restrictions on comp etition”. It analyses these restricti ons and examines whether they are 
necessary, consistent and proportion ate with the public interest objec tives claimed. The transparency and 
accountability of the regulatory system  that applies to the legal profession is also examined. The study proposes 
significant reform to the regulation of legal services and makes over forty proposals to remove or amend the 
restrictions identified.  
28. National competition authorities have al so pre-empted the adoption of new anti-
competitive legislation in this sector. Lit huania intervened on an amendment to the 
pharmaceutical law to flag concerns about  anti-competitive provisions on ownership, 
advertising and entry. It has also made a proposal to the governm ent to abolish fixed 
minimum prices for notaries. Hungary ha s likewise submitted a proposal to amend 
the Notaries Act, proposing that the scope of reserved tasks and the use of fixed 
tariffs be reviewed. Latvia reports intervening on amendments to the Notary Law to object to the use of fixed fees. 
29. This work has resulted both in change to remove anti-competitive restrictions and 
been a key factor in the setting up of government sponsored committees - for example in Denmark and the UK on the lega l professions - to consider in detail 
recommendations made and bring forward proposals for more radical change.  
30. Also, of note was the Luxembourg Presidency European Competition Day on 3 May 
2005. This was dedicated to the topic of  the professions and organised by the 
Luxembourg competition authority together with the responsible ministry. It brought together a range of representatives from the national competition authorities, national administrations and professions for a day in Luxembourg to discuss work in this 
area. 
                                                
 
12 The Polish study can be found at: http://www.uokik.gov.pl/pl/ochro na_konkurencji/analizyrynku/  
13 The Irish study can be found at: http://www.tca.ie/professions/legal_report_executive_summary.pdf  
 
EN 10   EN Denmark’s de-regulation project14 
In 2003 the Danish government launched a de-regulation proj ect aimed at reducing the number of rules restricting 
competition in Danish law. The project’s objective was to analyse a number of selected areas and identify 
possible changes to regulation that re stricted competition unnecessarily i.e.  without deviating from other public 
interest considerations such as prot ecting consumers, health etc. The analyses were carried out by the Danish 
Ministry of Economics and Business Affairs, the Danish Competition Authority and the Danish Ministry of Finance 
in co-operation with other relevant ministries. Twelve areas were analysed including dentists, legal counselling, 
land registration and registered surveyors. This has resu lted in pro-competitive changes to existing regulation.  
31. The EFTA Surveillance Authority has also  undertaken an analysis of the regulatory 
situation in the professional services in the EFTA countries (Iceland, Liechtenstein 
and Norway).15 The professions investigated were  lawyers, accountants, pharmacists, 
architects and engineers. This was pr ompted by the Commission’s review of 
professional services in the EU. 
4. PROGRESS BY NATIONAL REGULATORS AND PROFESSIONAL BODIES TO REFORM  
32. The information in this section and the annexes was gathered from national 
regulatory authorities in Member  States via a questionnaire.16 This asked for a brief 
description of restrictions to competition existing in February 2004 for each of the 
six professions and five categ ories of restrictions under study, along with details of 
legislative or other reforms (including to self-regulation by professional bodies), 
undertaken or planned to remove or modify these since that date. Where restrictions 
remained in place reasons were requested. 
4.1. Entry restrictions and reserved tasks 
33. Entry restrictions fall broadly into two categories – qualitative and quantitative. The 
former are designed to ensure that only those with appropriate qualifications and 
expertise can practise, and hence act to safeguard quality of service. They are also often closely tied to reserved rights to provide certain services. Quantitative 
restrictions are largely designed to safeguard access to important services. 
34. Progress in reviewing and re moving overly restrictive cont rols on entry and the range 
of reserved rights is set out in detail in Annex 1. 
4.1.1. Quantitative restrictions 
35. Strict entry controls in the form of quantitative limits (based both on demographic 
and geographical criteria) cont inue to exist in most Member States for the notary and 
pharmacy professions. Only Slovenia and th e UK report any substantive reforms to 
quantitative entry controls. Slovenia reports that the competence to make nominations, and make the final decision on  notary appointments, has passed to the 
                                                
 
14 Further information on the Danish de-regulation project can be found at: 
http://www.ks.dk/english/pu blications/2004/KBR-notat/  
15 The EFTA report can be found at: 
http://www.eftasurv.int/information/pr essreleases/2005pr/dbaFile7456.html  
16 Responses were not received from all Member States and those that were varied in completeness. As a 
result this may mean that the information presented is incomplete in some cases and does not reflect all 
relevant activity undertaken or underway. 
 
EN 11   EN national regulatory authority (Ministry of Justice) from the professional body thereby 
introducing more State control into the process. The UK sli ghtly eased rest rictions on 
the establishment of pharmacies. Howeve r, the relaxation falls short of the 
recommendations of the national competition authority.  
36. Some planned activities in the pharmacy sector are reported by France, Latvia and 
Lithuania. France is planning to ask the na tional competition authority for an opinion 
on the existing rules contained in the profe ssional ethical code re gulating the right to 
establish a pharmacy, and work is underway in Latvia with the aim of increasing the 
responsibility on local administ rators to ensure the availa bility of adequate health 
care in their area, including access to pharmacies. A draft amendment to the law on pharmacists has been prepared in Lithuania,  which contains quant itative restrictions 
on establishment. These have been queried by the national competition authority. Belgium reports work on modifying legi slation dealing with the location of 
pharmacies. 
37. Following a proposal from the national comp etition authority, Hunga ry reports that it 
has plans to review the Law on Notaries, which amongst other things will consider 
existing quantitative restricti ons on notaries. Included in Italy’s profession’s reform 
project are proposals to review entry requirements to all the professions.
17 
38. Reasons given for retaining quantitative restrictions in both the pharmacy and 
notarial professions focus on the need to ensure the adequate  provision of these 
services to all citizens, especially in remote areas, and to safeguard quality by ensuring practitioners are rewarded appropriately for their services. 
Pharmacists in Greece 
In Greece, a decision to eliminate re strictions on the estab lishment of pharmacies was recently reversed in 
January 2005 after five years and a quota system was re introduced. The effects of the quota system had been to 
provoke an increase of supply of pharma cies in Athens and a decrease of supply in the islands, thus leaving 
some islands without adequate pharmacy provision. T here is no evidence that an y alternative models to 
encourage the continuation of a more competitive environment were consider ed. One solution to ensure adequate 
provision to the islands could have been the payment of pub lic subsidies, in accordance with the State Aid rules, 
to encourage the opening of island pharmacies whilst maintaining the increase in supply in Athens. 
4.1.2. Qualitative restrictions 
39. Qualitative entry requirements are widesp read across most professions. These are 
often set by the State or by self-regulatory bodies a nd vary between countries.18 
                                                 
17 In Italy it is recognised by all parties that reform  of the general framework for the professions is long 
over due and proposals are before parliament. These include review ing access to the professions and 
business structure regulation. However, the current proposals retain fixed minimum tariffs for all 
professions. 
18 As far as professional qualifica tions are concerned, qualitative requirements imposed by Member States 
are in principle acceptable under Commun ity law (see for example Case C-55/94 Gebhard ). In order to 
facilitate the recognition of prof essional qualifications between Member States, Community law 
harmonised minimum training requirements for certain professions such as architects and pharmacists 
(see Directives 85/384/EEC and 85/432/EEC). Wh en qualifications have not been harmonised, 
mechanisms have been put in pl ace in order to facilitate the free movement of professionals while 
ensuring that these measures would not undermine quality: Community law allows host Member States 
to ensure a priori that the qualifications of migran ts willing to work on their territory match national 
requirements for the same activity (see Directives 89/48/EEC, 92/51/EEC and 1999/42/EC). 
 
EN 12   EN There has been progress on developing the current framework for mutual recognition 
of qualifications with respect to the profe ssions with the adoption of a new Directive 
on recognition of professional qualifications on 6 June 2005.19 The Directive, 
proposed by the Commission in the framew ork of the Lisbon agenda, consolidates 
and improves the current regime of mutual recognition of professional qualifications. It simplifies cross-border pr ovision of services. The Direc tive grants effective free 
movement of fully qualified professionals throughout the EU wh ile guaranteeing the 
protection of consumers. 
40. Four countries report substantive change (Italy, Latvia, Lithuania and Slovakia) to 
qualitative restrictions to facilitate entry to the legal, notarial and technical professions, but these seem to be of relati vely low impact. However, work planned or 
currently underway by one or two countries promises to have a higher impact in a 
number of professions.  
41. Italy has relaxed qualitative entry re quirements to allow architectural and 
engineering graduates, who have complete d a three year university course, to 
perform some reserved tasks previously onl y open to those having completed the five 
year course. Slovakia likewise  reports having eased entry requirements for architects 
by reducing the level of prof essional experience required.  
42. Latvia reports relaxing entry controls to  the notary and legal professions by reducing 
the level of professional experience requi red, and those with doc torates are no longer 
required to take the professional entry ex amination to enter the legal profession. 
Lithuania likewise reports easing entry cr iteria for lawyers so that those with 
significant relevant professional experience do not have to take the professional entry 
examination.  
43. Poland reports ongoing discussi ons on draft legislation to re move sole control of the 
entry examinations for the legal profe ssion from the professional bodies, thus 
providing greater transparency  and independent management  of the entry process. 
The draft legislation also contains proposal s to lower mobility barriers between the 
legal professions and create more avenues fo r entry. In the UK entry requirements to 
the Scottish legal profession are under review as part of the wider review of Scottish 
legal services. A government commission in  the Netherlands has been set up to 
consider the Law on Notaries, which will review the way notaries are appointed. 
Work is also underway to a llow candidate notaries to work  as employees for existing 
notaries thereby increasing accessibility to the profession in the Netherlands.  
44. As noted above, Italy’s prof ession’s reform project covers  access requirements to all 
the professions. The UK reports that a general review of regulation in the 
construction sector is underway. Portugal is reviewing the law which regulates 
qualitative entry requirements for tech nicians (including architectural and 
engineering technicians) involved in cons truction projects, and is also reviewing 
some of the other legislation in the construction field. Slova kia is planning to review 
the law in the field of civil engineer ing to simplify procedures and reduce 
professional discrimination. France has started a project to modernise the 
                                                
 
19 Details on the new Directive on recognition of  professional qualifications can be found at: 
http://www.europa.eu.int/comm/internal _market/qualifications/future_en.htm  
 
EN 13   EN architectural profession. Irela nd reports that it is consid ering reserving the title of 
‘architects’ in such a way as to include practically trained as well as academically trained architects. Luxembourg has passed legislation to free up entry requirements 
with respect to the professions of landscape and interior designers.  
45. Finland reports that new legislation on a uditing is being prepared. Estonia, Lithuania 
and Slovenia are planning new auditing legi slation to comply with the new EU 
Auditing Directive
20 when adopted, which could change some of the current 
restrictions. It is reasonable to assume that other Member States too may review 
existing legislation in the auditing field as  a result of the adoption of this new 
Auditing Directive. In Italy work is unde rway to merge into one the two existing 
professional bodies in the accountancy s ector. Spain plans to reform entry 
requirements for auditors. The UK reports having drawn up new draft ethical guidelines for auditors taking into account co mpetition concerns to ensure that they 
do not affect the ability of smaller companies to compete for the business of larger clients.  
46. Conversely, Luxembourg reports tightening of the entry requirements for 
accountants so that in future entrants will have to pass a professional test. Lithuania 
reports that educational entr y requirements have increased for auditors. In Cyprus 
consideration is being give n to increasing the level of  professional experience 
required to qualify as a lawyer. Spain is plan ning to reform entry controls for lawyers 
by introducing a professional entry examination. Estonia reports a new law, which introduced a registration system for those wi shing to practise as pharmacists, with the 
aim of ensuring that entrants have the necessary competence. Germany has also 
increased entry requirements for pharmacist s and those wishing to practise in public 
or hospital pharmacies must now prove that they have a sufficient knowledge of the 
German language and law. Hungary has in creased entry requirements for architects 
and engineers, and entrants must now pass a registration examination to become licensed and gain entry to the professional bodies.  
47. Reasons given for the need to  retain qualitative entry co ntrols centre on the need to 
safeguard quality of services for the end us er who is often not in a position to assess 
such quality, and protect the reputati on and integrity of the profession.  
4.1.3. Reserved tasks 
48. The scope of reserved tasks varies c onsiderably between Member States and 
professions. No Member State reports subs tantive progress in changing the scope of 
reserved rights, although work is planned or  underway in a number of countries in 
respect of the legal profession which could lead to change in some key reserved 
areas.  
49. These include a committee established in Denmark to consider the current regulation 
of lawyers, including lawyers’ exclusive righ t to represent parties before courts, and 
a German project with the aim of reviewi ng existing legislation to broaden its scope 
                                                
 
20 See Commission proposal for a Directive on stat utory audit of annual accounts and consolidated 
accounts and amending Council Di rectives 78/660/EEC and 83/349/EEC. This can be found at: 
http://www.europa.eu.int/comm/internal_market/auditing/officialdocs_en.htm  
 
EN 14   EN to allow others rather than just lawyers to provide legal advice/ counselling in certain 
areas.  
50. In the Netherlands there are plans to es tablish a government commission for lawyers 
to consider a range of issu es, including the lawyer’s monopoly to represent parties in 
court, and the government commission on notar ies will also consider the scope of the 
legal monopoly/reserved tasks of the notarial profession. The proposals under 
discussion in Poland provide for the creation of a ‘routine’ legal services sector by 
removing the exclusive right of legal advise rs and advocates to provide legal advice 
and services (representation in  court would however remain  a reserved area). In the 
UK the review of Scottish legal services is considering the extens ion of the rights of 
audience and rights to conduct litigation in  the higher courts. Hungary plans to 
review the Law on Notaries, including the scope of reserved tasks. Conversely, 
Portugal has introduced a law which reinforces  lawyers’ exclusive right to represent 
parties in court. 
51. In other fields, the planned changes to legislation in the auditing field as a result of 
the proposed new Auditing Directive could change some of the current reserved 
areas, as could the ongoing work  by some Member States in the construction sector. 
The Netherlands is reviewing the exclus ive rights of pharmacists, and Sweden 
reports an ongoing review of the State retail monopoly on pharmaceutical products 
following the ruling by the Eu ropean Court of Justice21. This monopoly prevents 
individual pharmacists from competing in  the retail market for pharmaceutical 
products. Portugal is planning to free up the distribution and sale of over the counter 
medicines hitherto only supplied by pharm acists. France is c onsidering modifying 
the law to remove certain products from the monopoly list so they can be sold 
outside pharmacies. Belgium also reports wo rk to modify the scope of pharmacist’s 
reserved tasks.  
4.1.4. The case for the review of entry controls and reserved tasks 
52. Disproportionate22quantitative and qualitative entry controls, and the giving of 
reserved rights can constitute severe rest rictions on competition. Overly restrictive 
regulation on what services can be pr ovided and by whom may inhibit competition 
and the evolution of new types of serv ices and products. This could lead to 
consumers not getting the choice in prices and services that would otherwise be available, or even their op ting out and choosing not to av ail themselves of services 
on offer. 
53. While the Commission accepts that each  Member State should be allowed to 
determine the level of qualific ation needed for entry to a profession in that country, 
such entrance requirements should be proportionate and reflect what is actually 
required to be able to perform the releva nt service to an ac ceptable standard.  
54. Poland provides an example of where exces sive qualitative entry requirements in the 
legal profession have had a negative impact on consumers.
23 Figures show that 
                                                 
21 Case C-438/02 Hanner 
22 As defined in footnote 2 above. 
23 See the Polish competition authority’s study at: 
http://www.uokik.gov.pl/download/Raport%20wolne%20zawody.doc  
 
EN 15   EN increases in the number of advocates has been well outpaced by the growth in the 
number of court cases.24 It is widely contended that this has resulted in consumers 
choosing to go without profe ssional legal advice and repr esentation. This is likely 
due to higher prices being charged for legal services than would have been the case 
with greater numbers of advocates in the market place, and difficulties of access to 
services.  
55. The unjustified giving of reserved tasks can have similar impacts on consumers by 
depriving them of new serv ices and providers, and impor tantly, greater choice and 
lower prices. Some countries have seen the clear benefits to be derived from 
reducing the range of reserved tasks and in  so doing have created new professions 
and innovative ways of providing services.25 
56. One example of where this approach ha s proved beneficial is in the area of 
conveyancing services (i.e. tr ansfer of property). Countries  such as the Netherlands, 
UK and Australia have remove d the monopoly rights for lawyers in this area. This 
has delivered benefits to consumers result ing in price falls and a wider range of 
services providers. In many other Member Stat es this field remains a reserved area of 
activity for the legal a nd notarial professions. 
57. The Commission Services invites Member  States to review the continuing 
maintenance of disproportionate26 quantitative and qualitative entry requirements, 
and to review the range of reserved task s with a view to reducing them wherever 
feasible. In particular, when restricti ons are deemed necessary to protect end 
consumers, increase their confidence, en sure accessibility a nd reduce transaction 
costs, Member States are encouraged to  consider possible alternatives which 
safeguard the interest of cons umers without depriving them of the benefits of a more 
competitive environment. The introduction of  specific regulatory requirements for 
consumer transactions, where appropriate,  may also deserve further consideration. 
Conveyancing services: An illustrative example of how removing monopoly rights has benefited 
consumers 
In the UK this monopoly right for lawyers was revoked in 1985 and by 1987 the first licensed conveyancers who 
were not lawyers had emerged and were operating in the market. This lead to prices falls in the 1990s. In 
addition, providers are also now ready to give fixed quotes to consumers who may shop around.27 In the 
Netherlands, research28 found in 2002 that conveyancing fees ha d fallen as a result of introducing more 
competition. While, for Australia, research29 in 1996 found that the introducti on of competition in conveyancing 
resulted in a reduction of fees of 17% in real terms. 
                                                 
24 It is estimated that the number of court cases in Poland more than  tripled during the 1990s while the 
number of advocates increased only slightly from 6900 to 7400. 
25 For an interesting critique on the need to modernise the two professions of pharmacists and notaries to 
meet modern demands - especially in relation to the most standard services - see paper by Prof. Benito Arruñada, ‘Managing Competition in Professional Se rvices and the Burden of Inertia’, 2004 EU 
Competition Law and Policy Workshop Pr oceedings. The paper can be found at:  
http://www.iue.it/RSCAS/Research/Compe tition/2004/200409-compet-Arrunada.pdf
. 
26 As defined in footnote 2 above. 
27 See UK government conclusions on the matters raised in its consultation paper, " In the public interest? " 
July 2002. These can be found at: http://www.dca.gov.uk/consult/general/oftreptconc.htm#part6  
28 The study by Fred Bruinsma can be found at: http://www.uu.nl/content/dutchlawinaction2003.pdf  
29 The study by J.Baker of the Justice Research Centre can be found at: 
http://www.lawfoundation.net.au/publica tions/research/cfcm/cfcm_rep.pdfker.J.  
 
EN 16   EN 4.2. Business structure regulation 
58. Significant restrictions on the way professiona ls can practise conti nue to exist across 
most Member States. Professi onals are often required to pr actise as individuals or in 
partnership with others in the same profession, and incorporation is widely 
forbidden. Even where incorporation is permitted, the 50% rule is common whereby persons in the same profession, or those prof essionals actually practising in a firm, 
must have the majority of share capital or voting rights. Rest rictions are most 
widespread in the legal, notarial and pha rmacy sectors. The usual reason given for 
these is to protect the independence of  the profession and quality of service.
30 
59. Two countries (France and Slovakia) repor t positive substantive reform (see Annex 
1). France reports some relaxation of the ownership rules in the legal and notarial 
professions. Slovakia reports that rules on the establis hment of pharmacies were 
relaxed opening the way for pharmacies to be established by non-pharmacists (although health care professionals entitled to  issue prescriptions are still barred from 
opening or owning shares). There are also plans by Slovakia to allow the entry of 
chain pharmacies. Conversely, Estonia repor ts that a new law introduced prohibits 
the ownership of pharmacists by drug manuf acturers and health care professionals 
entitled to issue prescriptions. 
60. Work is however reported as being underw ay by a number of countries. Austria is 
proposing to open the way to allow architect ural and engineering firms to have a 
financial holding/shares in other firms in  their respective sectors, and Belgium 
reports that work is underway to allow architects to form incorporated firms. Belgium also reports that a study is underway  to examine the options for closer/joint 
working between the accountancy professi on and other professions e.g. lawyers. 
Lithuania too reports plans to ease restri ctions in the accounta ncy/audit sector.  
61. Germany has started reviews to consider  easing restrictions in the accountancy, 
engineering and legal sectors.  Italy reports that its refo rm project includes proposals 
to revise business structure regulation in all professions
31. Business structure 
restrictions in the accountancy/audit field in  Member States may also change as a 
result of the new Auditing Directive wh en adopted, and the ongoing work in the 
construction field by some Member States c ould result in change  in this sector. 
62. The committee in Denmark on lawyers will also consider regulation on the 
ownership of law firms. The Clementi review (see box below) in the UK has considered the structure of the legal prof ession with a view to  opening the way for 
new and more innovative busin ess structures in the profession. A similar review is 
now also underway of Scottish legal services, and the Irish competition authority’s report on legal services has called on the government to radically change the 
                                                
 
30 In Case C-309/99 Wouters  the ECJ recognised that a rule in the ethical code, which prohibited 
partnership between lawyers and accountants in the Netherlands, could reasonably be considered 
necessary for the proper practice of the profession as  organised by the Member State concerned, despite 
the effects restrictive of competition that were inherent in it, and did not infringe the EC competition rules. It arrived at this conclusion having considered several factors, including the specific national set-
up and whether the rule was proportionate in these circumstances. 
31 See footnote 17. 
 
EN 17   EN structure of the profession. The Nether lands’ planned government commission on 
lawyers will consider busine ss structure restrictions.  
63. The Netherlands also reports that the gradual development of a more competitive 
market is being encouraged in the pharm acy sector, including the entry of pharmacy 
chains.  
64. This is an area where many Member States  shy away from reform given concerns 
about safeguarding the independence of th e professions. But this should not mean 
that reform cannot and should not be made, rath er that it may need to be addressed in 
a more holistic way. As noted above, there are already examples of such a holistic 
approach from Ireland and the UK, and expe rience shows that significant consumer 
benefits can flow from relaxing business structure restrictions. In the US, for 
example, relaxing controls has seen the em ergence of legal ‘clinics’ making access to 
legal advice available to c onsumers who would otherwise have considered lawyers 
too expensive. The Commission Services call on Member States to pursue reform in this area imaginatively and proactively. 
The Clementi Review of legal services in the UK32 
Sir David Clementi was commissioned by the UK government to undertake a wide ranging review of the 
regulatory framework within which the UK legal profe ssion operates. This is particularly notable because the 
scope of the review in the UK is total and the potential consequences of its findings could bring about the most 
significant wave of change to the UK legal profession in  its history. Terms of Reference for the Review were: 
• To consider what regulatory framework would bes t promote competition, in novation and the public and 
consumer interest in an efficient, effective and independent legal sector. 
• To recommend a framework which will be independent in representing the public  and consumer interest, 
comprehensive, accountable, consistent, flexible, trans parent, and no more restrictive or burdensome than is 
needed. 
Three key concerns lay behind the review: 
i. a concern about regulatory framework which was considered “outdated, inflexible, over complex 
and insufficiently accountable or transparent”. 
ii. a concern about the complaints systems and how consumer complaints were dealt with. 
iii. a concern about the restrictiv e nature of business structures which had changed little over a 
significant period of time despite changing business practices. 
The final Report was published in December 2004 and recommended extensive changes to existing practices to 
make legal services more consumer friendly, while at th e same time enabling providers to develop better, more 
competitive, customer-focus sed businesses. Principal recommendations are the creation of a new oversight 
regulator with significant powers, the separation of the r epresentative and regulatory func tions of the professional 
bodies, the creation of a single new complaints body a nd steps to enable the creation of Legal Disciplinary 
Practices (LDPs) which could see for the first time non-lawy ers not only as managers of legal practices, but also 
as owners of and investors in LDPs. The UK government will now publish a White Paper on the proposals later in 
2005, to be followed by legislation as soon as parliamentary time allows.  
                                                 
32 The Clementi Report can be found at: www.legal-services -review.org.uk . 
 
EN 18   EN 4.3. Fixed prices 
4.3.1. Reforms undertaken or planned 65. Of the Member States with fixed prices still in operation, Germany is the only one to 
report substantive progress (see Annex 2) in  removing them. It reports that fixed 
tariffs will be removed for lawyers for outside court work from 2006, and that the professional rules for tax consultants have  been changed to allow flexible tariff 
setting. 
66. Germany further reports that work is underw ay in respect of architects and engineers 
with the intention of abolishing fixed mi nimum and maximum tariffs. Consideration 
is also being given to reforming the fixe d tariff system in th e notarial profession. 
Lithuania reports that it intends to launc h a discussion on the replacement of fixed 
tariffs with maximum prices for notari es, and in Hungary, following on from the 
proposal of the national competition authority, the government intends to replace fixed tariffs with maximum prices. 
67. Some Member States also report a number of other ch anges of relevance. Slovenia 
reports that the professional body for notar ies has lost competence to propose fixed 
tariffs and that this has passed to the national regulatory authority. France is examining ways of reinforcing the requireme nt on lawyers to inform clients as fully 
as possible about how fees for legal serv ices will be calculated. Conversely, Italy 
reports that new minimum a nd maximum tariffs were adopted for lawyers in April 
2004 and that work is underway to revise  tariffs for engineers and architects. 
Slovakia also reports that revised tariffs were introdu ced for notaries in 2005 for 
some reserved tasks. 
68. Factoring in the actual changes, and a ssuming that the planned changes are brought 
into effect, means that there will be no fixed prices existing in any Member State for 
tax consultants/advisers, that  only four Member States (Cyprus, Greece, Italy and 
Luxembourg) will continue to have fixe d or minimum prices  for architects and 
engineers, and three for the accountan cy/audit profession (Greece, Italy and 
Portugal). That means that the legal and notarial professions will be the two areas where a significant number of countries con tinue to operate the practice of setting 
fixed, minimum or maximum tariffs. 
4.3.2. The legal and notarial professions and fixed prices – special cases? 
69. Arguments for the maintenance of fixed pr ices for notaries and the legal profession 
centre on the need to protect consumers from excessive charges and protect the 
prestige and independence of the professi on to ensure the delivery of a quality 
service. 
70. The key concern underlying the latter reason is the notion that competent individuals 
would either leave or fail to enter the legal profession if they are not rewarded financially, or otherwise, as befitting th eir high level of expertise and skills, and 
hence quality would suffer. This argument, however, seems unsusta inable when it is 
considered that fixed fee scales have been largely wiped away in the other 
professions with no marked decline in the qual ity of entrants or mass exodus of 
existing professionals. 
 
EN 19   EN 71. In the case of the Latin notary profession33, it is argued that fixed prices are in fact 
akin to a public tax given that many notar ial activities are an exercise of public 
authority. It is true that the notary profession is currently characterised by a general 
lack of effective competition stemming  from significant re gulation of many key 
aspects e.g. quantitative entry controls and advertising prohibitions. In such a highly 
regulated market, price regulation may be n eeded to protect consumers, but that does 
not mean that its removal is impossible. Ra ther, that price de-re gulation may need to 
be accompanied by other broader reforms (e.g.  relaxation of entry restrictions or 
removal of certain monopoly rights). An  example of where de-regulation in the 
notarial profession has taken pl ace is the Netherlands. This ha s lead to the removal of 
many fixed fees and the easing of entry rest rictions to facilitate the introduction of 
price competition. 
72. Finally, it is worth reitera ting that notaries are not exem pt from the scope of the EC 
competition rules. Although the exercise of  public authority is not an economic 
activity34, the concept of undertaking is relative. A given entity may be engaged 
partially in an economic activity and partially exercise public authority.35 In so far as 
it is engaged in an economic activity, it is subject to the competition rules. Though certain activities of notaries are genera lly regarded as the exercise of public 
authority, it is clear that not aries also engage in commer cial (economic) activities for 
which they compete with other professionals . Examples of this are the provision of 
legal advice and negotiation in  the real estate area. 
Notaries in the Netherlands36 
The Netherlands is the only country where substantial de-regulation of t he Latin notarial profession has taken 
place. Since the conditions for establishment were rela xed in 1999, there are 201 more candidate notaries and 
notaries, and 77 more notaries’ offices. New legislation, now in the drafting stage, will also allow notaries who do 
not wish to be independent, to become employees in a notary’s office. This de-regulation has resulted in prices 
increasing in the family law area, but decreasing for real estate transactions. To ensure access to notarial services in the family law area by the lower paid, the Netherlands regulates prices for this group and has 
established fixed maximum tariffs in this area. These tariffs are adjusted on a yearly basis.  
73. The Commission Services invites all Memb er States to take action to review 
particularly critically all fixed and minimum prices with  a view to removing them 
wherever possible. Price fixing does not guarantee quality, and may serve to inhibit healthy competition between providers, disc ourage efficiency, or the development 
and introduction of new services and ways of  doing things. This could be bad for the 
                                                
 
33 The so-called `Latin' notary professi on (sometimes referred to as ‘civil law notaries’) are independent 
professionals who advise private parties and draft contracts on their instruction, as well as partake in the issuing of public documents, and fulfil quasi-judicial duties. They are appointed by the state, entrusted 
with public functions and hold a public office. Th ey are not however civ il servants and remain 
independent from the state and economically self-reliant. This profession exists in AT, BE, CZ, DE, EE, EL, ES, FR, HU, IT, LT, LU, LV, MT, NL, PL, PT, SK and SI. 
34 Case C-364/92, Eurocontrol , [1994]  ECR I -0043 para 30, and C-343/95, Calì e Figli  1997 ECR I -
1547.paras 22-23. 
35 This was the case for the public employment office in Case C-41/90 Höfner  [1991] ECR I-1979, para. 
21, the airport authority in Case C-82/01 P Aéroports de Paris [2002] ECR II -3929 and the city of 
Trier in Case C-475/99 Ambulanz Glöckner  [2001] ECR I-08089. 
36 Details on the de-regulation of the notarial pr ofession in the Netherlands can be found at: 
http://www.justitie.nl/pers/persberi chten/archief/archief_2003/120203commissie_monitoring_notariaat
_publiceert_eindrapport.asp  
 
EN 20   EN professions who fail to adjust to new busin ess practices or technologies, and could 
lead to consumers having to pay inflated prices for mediocre levels of service. 
4.4. Recommended prices 
74. Substantive change has been reported by six Member States (Austria, Hungary, 
Ireland, Lithuania, Slovakia and UK) (see Annex 3). 
75. Austria reports that it has relaxed its policy on recommended prices for architects and 
engineers and that these have become gui delines. Hungary similarly reports that 
recommended minimum tariffs have become guidelines for architects. Ireland reports 
that the professional body for architect s has ceased the practice of issuing 
recommended fee tables during the year. Cha nges have been made to the architect’s 
professional code in the UK to allow archite cts to revise fee quotations to take into 
account quotations from other competing arch itects. In Slovakia recommended prices 
were abolished in 2005 for tax consu ltants, architects and engineers.  
76. In the legal sector, Lithuania has abolis hed recommended prices  for lawyers via a 
legislative amendment. In the UK the prof essional body for Scottish solicitors has 
agreed to withdraw its recommended pr ices for general business. The UK also 
reports that fee guidance has been withdr awn by the UK public not aries’ professional 
body.37 
77. Three other changes reported are of releva nce. Luxembourg reports plans to link fees 
to the results of work for lawyers, and Slove nia, that recommended fees for architects 
are currently being prepared for in troduction by the professional body. Revised 
recommended prices were introduced in Slovakia for lawyers during 2005. 
78. This means that some progress has been made in reviewing and eliminating 
recommended prices for architects, engineer s, lawyers and notaries. That said, there 
are still a significant number of Member  States with recommended prices in 
operation, and as with fixed prices, it is th e legal and notarial professions that have 
the largest number. As noted above, one Member State even reports plans by the professional body to introduce recomme nded fee scales for architects. 
79. The key justifications give n for maintaining recommende d fee scales centre on the 
need to provide a guide to consumers on likely costs and protect against what is termed ‘unfair’ competi tion between practitioners
38. Some Member States also point 
to the fact that the scales are non-binding and that client and provider are free to 
agree a fee without reference to such scales. 
                                                 
37 UK public notaries are to be distinguished from the Latin notary profession as defined in footnote 33. A 
UK Notary Public bridges the differ ences between the legal systems of one nation with that of another, 
so as to give lawful effect to arrangements made by parties from different countries. Within the UK, a 
Notary Public service will usually be available thro ugh a Solicitor who has been granted the authority to 
act in legal matters associated with foreign jurisdictions. The Notaries Society is the representative 
society for the 900 or so Notaries Public practising in England and Wales. 
38 In some countries professionals are barred from engaging in certain business practices such as price 
competition and advertising under ethical codes. Such practices are considered to undermine the dignity 
and prestige of a profession and to engage in  them is deemed as ‘unfair’ competition. 
 
EN 21   EN 80. Recommended fees and reference scales can still act to facilitat e price co-ordination. 
There are other less distorting ways to pr ovide consumers with a ‘guide’ to prices. 
For instance, active monitoring by consumer associations on pricing and the collection and publication of survey base d historical price data by independent 
organisations. Ways can also be developed to provide customers with costs of the 
professional service ex ante, at the moment  of giving the mandate . Certainly scales 
which do not help the consumer to know in advance how much they will have to pay 
(either because of their complexity or because they are not public) are totally 
unjustifiable. The Commission Services urge all involved to eliminate the use of recommended fee scales as soon as possible. 
4.5. Advertising restrictions 
81. The level of permissible advertising con tinues to vary considerably across Member 
States and professions. Five Member States report substantive change to advertising 
restrictions (France,  Ireland, Italy, Lithuania and Portugal) (see Annex 4). The 
majority of these changes relate to provi sions being relaxed in  ethical codes and 
reflects the fact that a significant number of  advertising restricti ons are contained in 
such codes
39. 
82. In the accountancy profession, France has relaxed the law to allow informative 
personal advertising and work has started to bring the code of professional ethics into 
line. Germany also reports that a review is underway of the professional body’s rules 
on advertising in the accountancy sect or with the aim of relaxing them. 
83. In Ireland advertising restrictions have been removed for arch itects and engineers 
and in Italy the architect’s ethical code was reviewed and the restrictions relaxed. 
There are also plans in place in Ital y to review the engineer’s code. 
84. Lithuania and Portugal repor t substantive change  in the legal profession and both 
have freed up the effective prohibition to  allow some ‘publicity’ type activities 
(although proactive promotional ad vertising is still prohibited40). Five other countries 
report that work has started or is pla nned to examine or reform advertising 
restrictions in the legal profession (Denma rk, Estonia, France, Germany, and UK in 
respect of Scottish legal services). Greece al so reports plans to review the legislative 
rules on publicity (but not advertising). Ital y reports work to create new ethical rules 
for notaries covering the provision of  information to the public.  
85. In the pharmaceutical sector, two countries re port having plans to review the rules on 
advertising (Hungary and France). Luxembourg, however, reports plans to incorporate the effective prohi bition on advertising into th e professional ethical code 
thus making it binding. 
                                                
 
39 In many countries a distinction is also made between ‘publicity’ or ‘informative advertising’, and 
‘advertising’ or ‘promotional publicity’, the idea being that a wider dissemination of information on the 
part of professionals  is accepted, or becoming accepted, while pr oactive promotional advertising is still 
prohibited. The latter may include in particular co mparative advertising, co ld-calling and soliciting. 
However, the line between what is  considered ‘informative’ and wh at is considered ‘promotional’ 
varies between countries and professions. 
40 See footnote 39 above for explanation. 
 
EN 22   EN 86. While these changes and plans are welcome, there are still widesp read restrictions on 
advertising covering both manner (e.g. only pr inted advertising is  permissible) and 
content (e.g. comparative adver tising is prohibited). Of par ticular note is the effective 
blanket prohibition on advertising in place across the notarial profession in Europe. 
87. Maintenance of such restri ctions is defended on the ba sis of protecting consumers 
from misleading claims, preventing ‘unfai r’ competition, and pr eserving professional 
integrity and independence. 
88. Advertising can play a key role in inform ing and educating consumers. It provides a 
means by which they can compare and contrast  services, and seek out services that 
best suit their needs and means. The existen ce of severe advertisin g restrictions in the 
professions can thus make it more difficult for the consumer to know where to find 
an expert, or determine the likely price of a given service, and hence contribute to 
consumer ignorance and confusion. It is espe cially difficult to see how advertising 
restrictions which cover both content and manne r can be justifiable.  As to protecting 
consumers from misleading advertising, th ere is general EU-w ide legislation on 
deceptive and misleading advertising41 that serves to protect consumers against such 
abuse, so it is questionable why there is a need for further sector specific 
restrictions.42 All advertising restrictions alle gedly based on the need to protect 
consumers against unfair claims, other th an those foreseen in the EU unfair 
commercial practices legislation, shoul d be reviewed urge ntly. Advertising 
restrictions designed to pr otect against unfair competiti on, and preserve the dignity 
and integrity of the profession, should also be reviewed to ensure  they are justified 
and proportionate43. 
5. ENFORCEMENT BY THE COMMISSION , NATIONAL COMPETITION AUTHORITIES AND 
NATIONAL COURTS  
89. In June 2004 the Commission issued a decision condemning the recommended 
minimum fee scale operated by the Belgian Architects’ Association44. This scale – 
described as a ‘guideline’ - laid down th e minimum fees for architectural services 
performed by independent architects in Be lgium. The Commission considered that 
the original decision of th e Association in 1967 laying down the fee scale (which had 
subsequently been amended several times since), should be considered as an 
independent act of prescriptive character for which the Association, acting as an 
association of undertakings, was wholly re sponsible. The Commission also came to 
the conclusion that the Association intended to coordinate its members’ behaviour in 
                                                 
41 Directive 2005/29/EC of 11 May 2005 concerning unfai r business-to-consumer commercial practices in 
the internal market. . 
42 Member States are permitted by Article 7.5 of the Directive 84/450/EEC on misleading advertising, as 
amended by Directive 97/55/EC, to introduce bans or limitations on comparative advertising for 
professional services. This is intended to safeguard the interests of professionals and competitors. Any 
bans or limitations introduced must however be compatible with the provisions of the European Community Treaty (see judgemen t of the Court of First Instance in case T-144/99 Institute of 
Professional Representatives before the European Patent Office v Commission [2001] ECR II-01087 
concerning comparative advertising).  
43 As defined in footnote 2 above. 
44 Decision of 26.06.2004, COMP/38.549 - PO / L'Ordre des Architectes belges, 
http://www.europa.eu.int/comm/competition/ antitrust/cases/index/by_nr_77.html#i38_549  
 
EN 23   EN the market via this practice and that the f ee scale had the restriction of competition as 
its object. This was even despite the fact th at the Association described the scale as a 
‘guideline’ and that not all architects had complied with the scale. The Commission 
imposed a fine of €100,000. The Association de cided not to appeal this decision and 
withdrew the scale of fees, and took steps to publicise the fact. 
90. National competition authorities have al so been active. Annex 5 provides an 
overview of cases opened since publicat ion of the Commission’s 2004 Report under 
the EC competition rules in the six professions selected  for study. Cases have also 
been opened covering other professions such as veterinari es and dentists. 
91. Ten cases were opened during 2004/05. These cover a variety of restriction type and 
professions. All are against professional as sociations. Two were closed following 
satisfactory voluntary resolu tion of the competition concern identified. In the 
Austrian case against the Bundesinnung Bau (Austrian Builders Association) it was 
found that the so-called ‘non-binding’ r ecommended price scales were in effect 
binding and contrary to Article 81, and that these should be revoked45. 
92. Member States are also pursuing furt her regionally confined cases under their 
national competition rules. Again, these cover a range of professions and restrictions. One interesting example is a case undertaken by the Finnish Competition Authority against the Association of Finnish Architects. This ended in the competition authority issuing a prohibition decision against the professional body which had 
banned its members from participating in architectural competitions that it had not approved. 
93. Under Article 234, national courts can ask th e European Court of Justice (ECJ) for a 
preliminary ruling on a question that is necessa ry to enable it to give a judgement on 
the application of Community law, incl uding the EC competition rules. On 17 
February 2005, the European Court of Justice made an order on a request for a 
preliminary ruling concerning the State ex amination for access to the Italian Bar 
(Case C-250/03, Mauri ). In Italy, the examination committee, which oversees the 
access examination to the Bar, is compos ed of five members appointed by the 
Minister for Justice, namely, two judges, a professor of law and two advocates - the 
latter being nominated by the Consiglio N azionale Forense (nati onal bar council) on 
a joint proposal by the bar c ouncils of the district concerned. The order assessed the 
facts on the basis of the criter ia mentioned in Case C-35/99, Arduino . The ECJ 
concluded that Articles 81 EC, 82 EC a nd 43 EC do not preclude a rule which 
provides that the examination committee is to be composed as described. Since it 
appears that the Ministry of Justice ma intains substantial supervision of the 
procedures for the State examination, the EC J concluded that the State had not given 
up the exercise of its powers in favour of private economic operators. The reasoning 
was identical as in Arduino , i.e. the State has not given up the exercise of its powers 
in favour of private economic operators nor can  that State be criticised for requiring 
or encouraging the adoption of agreements, decisions or concerted practices contrary 
to Article 81 EC or reinforc ing their effects or for requiri ng or encouraging abuses of 
a dominant position contrary to Article 82 EC  or reinforcing the effects of such 
abuses. 
                                                
 
45 Case summary can be found at: http://www.bwb.gv.at/BWB/Aktuell/widerruf_der_hob_baumeister.htm  
 
EN 24   EN 94. Currently there is one pr eliminary ruling pending befo re the European Court of 
Justice on which the Commission has submitted observations asking the Court to refine its case-law in line with the Commission’s 2004 Report (Case C-202/04, 
Capodarte and Macrino/Meloni .) 
6. C
ONCLUSIONS  
95. There has been some substantive progress in refining and eliminating 
disproportionate restrictions46 to competition in legislation and in the rules and 
regulations of profession al bodies during 2004/05. Two Member States (Slovenia 
and UK) report progress in easing quantitativ e entry restrictions and four (Italy, 
Latvia, Lithuania and Slovakia) in freeing up qualitative restrictions; two (France and 
Slovakia) in relaxing business structure re gulation; one (Germany) in removing fixed 
or minimum prices; six (Austria, Hungar y, Ireland, Lithuania, Slovakia and UK) in 
ending the use of recommended prices; five  (France, Ireland, Italy, Lithuania and 
Portugal) in easing advertising restrictions . No substantive progr ess is reported on 
revising the scope of reserved tasks. 
96. Some promising work is underway in a nu mber of countries (Denmark, Netherlands, 
Poland and UK), which could lead to significan t change in the structure of the legal 
professions, and in Germany in re spect of a number of professions. 
97. Most progress is being made in those countries where there is a structured 
programme of pro-competitiv e or regulatory reform in place - Denmark, Netherlands 
and UK. Moreover, it is notable that in th ese countries there is a close partnership 
between government and national competition authorities. In other countries the reform process has not yet got underway, or  can best be desc ribed as haphazard.
                                                
 
46 As defined in footnote 2 above. 
 
EN 25  
 EN Annex 1: Overview of reforms made or planned during 2004/05 to en try restrictions, reserved tasks or business structure regulat ion 
Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
Accountancy 
/audit  Estonia: plans to draw up a new Auditing Act to 
comply with the new Auditing Directive due for 
adoption in 2005. This could change some of the current 
restrictions.  
Finland:  new law pending on auditing (currently in 
draft form). 
Italy:  it is recognised that reform of the general 
framework for the professions is long over due and 
proposals are before parliament. These include 
reviewing access to the professions and business 
structure regulation. Work is also underway to merge 
into one the two existing professional bodies for the 
accountancy profession (‘do ttori commercialisti’ and 
‘ragionieri periti commerciali’).  
Lithuania:  new Law on Audit introduced in 5/04 
increased the entry requirements. Instead of higher 
education it became higher ‘economic education’ and 
the number of examinations required for professional 
qualification increased from 4 to 5. There are also plans 
to draw up an amended Law on Audit to comply with 
the requirements of the new Audit Directive when 
adopted. 
Luxembourg: training requirements have been 
amended. In future entrants will be required to pass an 
aptitude/ professional test to practise as an accountant 
(‘expert-comptable’) - sti ll to be implemented. 
Slovenia:  legislative reform is planned after adoption of 
the new Auditing Directive. 
Spain:  plans to reform entry re quirements for auditors.  
UK: new draft ethical standards for auditors have been 
formulated by the Auditing Practices Board (APB). 
Following intervention by the NCA these were revised 
to ensure that that they did not affect the ability of small and medium sized audit firms to compete for the Estonia:  plans to draw up a new Auditing Act to 
comply with the new Auditing Directive due for 
adoption in 2005. This could change some of the current 
restrictions.  
Lithuania : plans to draw up an amended Law on Audit 
to comply with the requirements of the new Audit 
Directive when adopted. 
Slovenia:  legislative reform is planned after adoption of 
the new Auditing Directive. Belgium:  study underway to examine the options for 
inter-professional co-operation/joint working between 
the accountancy profession (accountants/auditors/tax 
consultants) and other professions e.g. lawyers.  
Estonia:  plans to draw up a new Auditing Act to 
comply with the new Auditing Directive due for 
adoption in 2005. This could change some of the current 
restrictions.  
Germany:  review underway to  consider relaxing 
business structure restrictions so that accountants can 
co-operate/work jointly e.g.  form partnerships with 
those outside the professions too  
(e.g. Gewerbetreibenden). 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
forbidden). 
Lithuania:  plans to widen the law and allow legal 
entities as well as natural persons to carry out audits
 
(currently only legal entities are allowed to carry out 
audits in Lithuania). There are also plans to draw up an 
amended Law on Audit to comply with the requirements 
of the new Audit Directive when adopted. 
Slovenia:  legislative reform is planned after adoption of 
the new Auditing Directive. 
 
EN 26  
 EN Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
business of larger clients. The revised draft introduced 
exemptions for SME’s and sm all audit firms to provide 
for this.  
Tax 
Consultants 
(where this 
profession 
exists 
separately)  None  None  Belgium:  study underway to examine the options for 
inter-professional co-operation/joint working between 
the accountancy profession (accountants/auditors/tax 
consultants) and other professions e.g. lawyers.   
 
Architects France: project underway to reorganise and modernise 
the architectural profession. 
Hungary: from  1/1/05 entry requirements were 
increased and entrants have to pass a new registration examination to become licensed and be able to join the 
professional body/chamber to practise as a licensed 
architect. This examination is regulated by the 
government. 
Ireland:  the government is proposing to reserve the title 
of ‘architect’ in a way so as to include practically trained 
as well as academically trained architects.  
Italy:  it is recognised that reform of the general 
framework for the professions is long over due and 
proposals are before parliament. These include 
reviewing access to the professions and business 
structure regulation. Access requirements have already 
been relaxed to allow gradua tes who have completed a 3 
year university course to perform some reserved tasks 
previously only open to those having completed the 5 
year course. 
Luxembourg:  law passed in 7/04 which freed up entry 
requirements with respect to landscape and interior 
designers. Only relevant st udy now required. No longer 
have to be admitted to a professional body, or take a 
professional examination, or do a period of traineeship 
(internship). 
Portugal:  review underway by the government of the 
law which regulates qualitative entry requirements for Portugal:  government is reviewing some of the 
legislation in the construction area. 
UK: general ongoing review of regulation in the 
construction industry by the government.  
 
 Austria:  work underway to allow architectural 
companies to have a financial holding/buy shares in 
other architectural companies (currently only natural 
persons may own shares in an architectural company).  Belgium:  project in progress to allow architects to 
operate as incorporated entities (currently this is not 
allowed). 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
forbidden, with some exceptions). 
Portugal:  government is reviewing some of the 
legislation in the construction area. 
UK: general ongoing review of regulation in the 
construction industry by the Government.  
 
 
EN 27  
 EN Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
‘technicians’ involved in construction work (this 
includes architectural and engineering technicians). 
Review will cover access re quirements. The government 
is also reviewing some of the legislation in the 
construction area. 
Slovakia:  entry requirements re laxed. Professional 
training requirement now 3 instead of 5 years.  
UK: general ongoing review of regulation in the 
construction industry by the government. 
Engineers Hungary: from 1/1/05 entry requirements have been 
increased and entrants have to pass a new registration 
examination to become licensed and be able to join the 
professional body/chamber to practise as a licensed 
engineer. This examination is regulated by the 
government. 
Italy:  it is recognised that reform of the general 
framework for the professions is long over due and 
proposals are before parliament. These include 
reviewing access to the professions and business 
structure regulation. Access requirements have already 
been relaxed to allow gradua tes who have completed a 3 
year university course to perform some previously 
reserved tasks only open to those having completed the 
5 year course. Portugal:  review underway by the government of the 
law which regulates qualitative entry requirements for 
‘technicians’ involved in construction work (this 
includes architectural and engineering technicians). 
Review will cover access re quirements. The government 
is also reviewing some of the legislation in the 
construction area. 
Slovakia: plans to review and amend the Building Act 
with respect to the field of civil engineering to simplify 
procedures and reduce any kind of professional 
discrimination. 
UK: general ongoing review of regulation in the 
construction industry by the government. Portugal:  government is reviewing some of the 
legislation in the construction area. 
Slovakia: plans to review and amend the Building Act 
with respect to the field of civil engineering to simplify 
procedures and reduce any kind of professional 
discrimination.  
UK: general ongoing review of regulation in the 
construction industry by the government.  Austria:  work underway to allow engineering 
companies to have a financial holding/buy shares in 
other engineering companie s (currently only natural 
persons may own shares in an engineering company).  
Germany:  review is underway in some regions at 
Länder level to consider relaxing business 
structure/ownership restrictions (currently the 50% rule 
operates in the case of cer tain types of engineering 
companies i.e. the majority of share capital must be 
owned by engineers). 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
forbidden, with some exceptions). 
Portugal:  government is reviewing some of the 
legislation in the construction area. Slovakia: plans to review and amend the Building Act 
with respect to the field of civil engineering to simplify 
procedures and reduce any kind of professional 
discrimination. 
UK: general ongoing review of regulation in the 
construction industry by the government. 
 
EN 28  
 EN Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
Legal 
profession Cyprus:  consideration being given to increasing the 
practical experience requirement to 2 years from the 
current 1 year. 
Italy:  it is recognised that reform of the general 
framework for the professions is long over due and 
proposals are before parliament. These include 
reviewing access to the professions and business 
structure regulation.  
Latvia:  requirements have been relaxed with regard to 
the level of professional experience required and the 
requirement to take the prof essional entry examination 
has been removed for those w ith PhDs. This is designed 
to facilitate entry. 
Lithuania:  entry criteria have been relaxed for those 
with significant professional legal experience (of at least 
5 years) so that they do not have to take the professional 
entry examination. It is designed to facilitate access. 
Poland:  new law under discussion to promote greater 
access to the legal profession (it creates a new ministry 
commission to oversee the entry examinations thus 
providing more transparency and openness, and creates 
new routes of entry to the legal profession).  
Spain:  reforms planned to increase entry requirements 
for lawyers by introducing a professional entry 
examination. 
UK – Scotland: entry requirements are under review by 
the Scottish Executive Working Group on Legal 
Services (this is due to report by Summer 2005).  Denmark:  a governmental committee was set up in 
2004 to examine the rules on lawyers – among them the 
sole right to represent parties in court.  
Germany:  project underway by Ministry of Justice to 
consider changes to the law governing the provision of 
legal advice/counselling. The aim is to broaden the 
scope of the law to allow others rather than just lawyers 
the right to provide legal advice in certain areas. 
Denmark:  a governmental committee was set up in 
2004 to examine the rules on lawyers – among them the 
sole right to represent parties in court.  
NL: there are plans to set up a government commission 
to review the Law on Lawyers which will include 
considering whether lawyers’ monopoly for in court 
work should continue. This commission will report 
within 6 months of being set up. 
Poland:  new law under discussion also proposes 
creating a ‘routine’ legal services sector. The proposal 
would remove the monopol y rights of legal 
advisers/advocates to provid e legal advice/services. 
Representation in court would remain a reserved area.  
Portugal:  law in 8/04 introduced notion of “actos 
próprios”, which are prohibited to other professions. 
This reinforces the sole right of lawyers to provide 
representation in court. 
UK – Scotland:  extending rights of audience and rights 
to conduct litigation in the higher courts to non-lawyers 
under review by Scottish Executive Working Group on 
the Legal Services.  Denmark:  the governmental committee will also 
consider current business structure regulation.   
France:  new décret in 2004 relaxed the ownership rules 
to allow the constitution of legal firms where the 
capital/shares can be held by other legal firms or natural 
persons in the legal professi on (also see under notaries 
below). Changes have also been made to the law to 
allow financial participation by ‘sociétés’ in foreign 
legal firms. 
Germany:  project underway by the Ministry of Justice 
on a new law will also consider relaxing the current 
business structure/ownershi p restrictions on lawyers 
(lawyers can currently only co-operate/form partnerships 
etc. with patent lawyers, tax advisers and accountants). 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
forbidden). 
NL: the planned government commission to review the 
Law on Lawyers will also consider regulatory structure, 
including handling complaints  and disciplinary issues, 
and permissible business structures.  
UK- England and Wales:  Clementi review has made 
proposals to relax current restrictions on business 
structure. 
UK – Scotland:  business structure restrictions under 
review by the Scottish Executive Working Group on 
Legal Services. 
 
Notaries Hungary: following on from the proposal of the NCA, 
the Ministry of Justice intends to review the Law on 
Notaries. This will amongst ot her things consider the 
quantitative restrictions on notary numbers.  
Italy:  it is recognised that reform of the general 
framework for the professions is long over due and 
proposals are before parliament. These include 
reviewing access to the professions and business Hungary: the proposed  review of the Law on Notaries. 
will also consider the scope of reserved tasks.  
NL: government commission established in July 2004 
will also consider scope of legal monopoly/reserved 
tasks of notaries.  
 France:  new décret in 2004 relaxed the rules to allow 
notaries to form incorporated firms. Notaries are also 
now permitted to hold a minority share/financial holding 
in a legal firm. Cha nges have also been made to the law 
to allow financial participation by ‘sociétés’ in foreign 
notarial firms. 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
 
EN 29  
 EN Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
structure regulation.  
Latvia:  educational/qualitative entry requirements were 
relaxed from 11/04 to facilitate entry by a wider range of 
people. 
NL: government established a commission in July 2004 
to review the Law on Nota ries. Amongst other things 
this will consider the current conditions of appointment 
to the notarial profession. It is due to report by July 
2005. Also, work underway to open the way for 
candidate notaries to become employees of an existing 
notary – designed to increase accessibility to the 
profession. 
Slovenia:  the competence to make nominations and 
make the final decision on notarial appointments has 
passed to the national regulat or (Ministry of Justice) 
from the professional body. Th e Ministry also now has a 
greater supervisory role. forbidden). 
Pharmacists Belgium:  project to modify legislation on location of 
pharmacies. Also project to renew the ethical code.  
Estonia:  new law introduced registration system for 
pharmacists wishing to practise (took effect from 
1/3/05). Aim being to ensure all entrants have the 
necessary competence. 
France:  plans to ask the NCA for an opinion on the 
rules and restrictions governin g the right to establish a 
pharmacy contained in the ethical code.  
Germany:  entry requirements were increased from 
15/7/05 as a result of a change to the law. This now 
requires pharmacists wanting to work in public or 
hospital pharmacies to prove that they have a ‘sufficient 
knowledge’ of the German  language and law. 
Italy:  it is recognised that reform of the general 
framework for the liberal professions is long over due 
and proposals are before parliament. These include 
reviewing access to the professions and business 
structure regulation.  
Latvia:  plans to amend the law to increase the Belgium:  project will also modify legislation on some 
reserved tasks. Also project to renew the ethical code.  
France: discussions underway about modifying the law 
to remove certain products  from the monopoly list so 
they can be sold outside pharmacies.  
NL: evaluation of reserved tasks in process.  
Portugal:  plans to open up market for the sale of some 
medicines. 
Sweden:  government review of the structure and 
operation of the State owned monopoly on retail 
pharmacies following ECJ ruling. Belgium:  project to renew the ethical code.  
Estonia: new law introduced restrictions on ownership 
of pharmacists (took effe ct from 1/3/05). A drug 
manufacturer, or health care professional entitled to 
issue prescriptions, cannot be a shareholder of a 
pharmacy. This aims to ensure the independence of the 
practising pharmacist. 
Italy:  reform project provide s for establishment of 
professional corporations (currently incorporation is 
forbidden). 
NL: gradual development of a more competitive market 
is being encouraged, including entry by pharmacy 
chains. 
Slovakia:  rules on establishment were relaxed from 
1/12/04 so that pharmacies can be established by non-
pharmacists (previously only pharmacists were allowed 
to establish pharmacies), but with the exception of 
health care professionals ent itled to issue prescriptions 
who are still barred from establishing or being 
shareholders in a pharmacy. Also, plans to allow the 
 
EN 30  
 EN Profession Reforms to entry restrictions Reforms to reserved tasks Reforms to business structure 
responsibility on local administrators to ensure the 
availability of health care services in their area, 
including pharmacies. 
Lithuania:  draft amendment to the law has been 
prepared. NCA has queried the quantitative restrictions 
therein.  
UK: NCA study suggested relaxing entry controls on 
number and location of pha rmacists. Some initial 
reforms were announced by the government in 8/04.  creation of chain pharmacies (current rules allow 
ownership of one pharmacy and one branch only). 
 
Source: National regulators responses to Co mmission questionnaire da ted December 2004.  
 
EN 31  
 EN Annex 2: Overview of countries and professions with fixed prices and reforms ma de during 2004/05 or planned  
Profession Fixed prices as @ February 2004 Minimum prices as @ February 2004 Maximum prices as @ February 2004 Reforms made or planned since 
February 2004 
Accountancy 
/audit  Greece Italy (for public accountants only) 
Portugal (for statutory audit only) Italy (for public accountants only)  
Tax Consultants 
(where this 
profession exists 
separately)  Germany (list of criteria that must be 
taken into account when setting prices)  Germany (list of criteria that must be 
taken into account when setting prices)  Germany:  professional rule has been 
changed so that the criteria are now 
‘guidelines’ and are not binding.  
Architects Luxembourg  
 Cyprus (for public projects and works 
only) 
Germany  
Italy (for specific services defined in law) Germany 
Italy (for specific services defined in law) Germany:  work underway by the 
government to abolish fixed minimum 
and maximum tariffs. (First draft law 
from the Ministry proposing abolition of 
tariffs did not get a political majority.) Italy: work group set up in Ministry to 
revise tariff scales for both private and 
public works  
Engineers Luxembourg  
 Cyprus (for public projects and works 
only) 
Germany 
Greece 
Italy (for specific services defined in law) Germany 
Greece 
Italy (for specific services defined in law) 
 Germany:  work underway by the 
government to abolish fixed minimum 
and maximum tariffs. (First draft law 
from the Ministry proposing abolition of 
tariffs did not get a political majority.) 
Italy: work group set up in Ministry to 
revise tariff scales for both private and 
public works.  
Legal profession Czech Republic 
Estonia (for legal aid cases only) 
France (for technical and procedural 
aspects of court work only) 
Ireland (for legal aid cases only) 
Luxembourg (for legal aid cases only) 
Poland (for court work only) 
Slovenia 
Spain (for the profession of  
‘procuradores’ only) Cyprus 
Germany  
Greece 
Italy 
 Italy France:  work underway to legally 
reinforce the requirement on lawyers to 
inform clients fully as to how services 
will be priced. 
Germany:  tariffs for out of court work to 
be removed from 1/7/06. 
Italy:  on 8/4/04 revised tariffs were 
adopted. 
 
EN 32  
 EN Profession Fixed prices as @ February 2004 Minimum prices as @ February 2004 Maximum prices as @ February 2004 Reforms made or planned since 
February 2004 
Notaries 
 
 
 
 Belgium (for certain services defined in 
law) 
Estonia 
France 
Germany 
Greece 
Hungary 
Italy 
Latvia 
Lithuania 
Slovakia (for areas of work reserved to 
notaries and probate work only) 
Slovenia 
Spain (for certain services it is possible to 
negotiate a reduction of up to 10% on 
fees)  Czech Republic 
Portugal 
  Austria (for notarial acts only) 
Czech Republic 
Luxembourg (for notarial acts only)  
Malta 
Netherlands (for those on a low income 
and only in respect of family law)  
Poland 
Portugal  
  
 
 Germany:  work has begun to reform the 
fixed tariff system.  
Hungary:  following on from the 
proposal of the NCA, the Ministry of 
Justice intends to replace fixed tariffs 
with maximum prices. 
Lithuania:  the government intends to 
launch a discussion on the replacement of 
fixed tariffs with maximum prices. 
Slovakia:  revised fixed tariffs were 
introduced in 2005 for some reserved 
areas of work by the Ministry of Justice. 
Slovenia:  professional body has lost 
competence to propose tariffs and this 
has passed to the Ministry of Justice who 
also has final say on level of tariff.  
Source: National regulators responses to Co mmission questionnaire dated December 2004. Wher e responses were incomplete or not r eceived information has been taken from the 2004 Report or the 
Stocktaking Report on the new EU Member St ates and the country name is shown in italics.  Pharmacists are not included. 
 
EN 33  
 EN Annex 3: Overview of countries and professions with reco mmended prices and reforms ma de during 2004/05 or planned  
Profession Recommended prices as @ February 2004 Reforms made or planned since February 2004 
Accountancy/audit  Austria 
Greece 
Italy 
Portugal  
Slovakia 
Slovenia (for audit only)   
Tax Consultants 
(where this 
profession exists 
separately)  Slovakia 
Spain Slovakia: recommended prices were abolished from 1/1/05.  
Architects Austria 
Czech Republic 
Denmark  
Hungary 
Ireland 
Luxembourg 
Portugal (for public works only and are non-binding)  
Slovakia 
Spain  Austria:  from 12/04 recommended prices have become ‘guidelines’. 
Hungary:  recommended minimum tariffs set by the professional body/chamber were 
modified to become ‘guidelines’ in 12/04. 
Ireland:  the practice by the professional bod y of providing recommended fee tables 
ceased during the year following intervention by the NCA.  
Slovakia:  recommended tariffs were abolished from 14/5/05. 
Slovenia:  new recommended tariffs are currently under preparation by the professional 
body.  
UK: the professional body’s code was changed in  9/04 to allow architects to revise fee 
quotations to take into account fees quoted by other competing architects (this was 
formally forbidden) following intervention by the NCA. 
Engineers Austria 
Czech Republic 
Hungary  
Italy (for those services not  covered by fixed prices) 
Luxembourg  
Portugal (for public works only and are non-binding)  
Slovakia 
Slovenia 
Spain (for some types of e ngineering services only) Austria:  from 12/04 recommended prices have become guidelines. 
Slovakia:  recommended tariffs were abolished from 1/1//05. 
 
Legal profession 
 
 
 Austria 
Denmark (for legal aid cases only) 
Greece (for legal consultancy services only) 
Latvia Lithuania:  recommended prices were abolished from 6/4/04 via an amendment to the 
Law on the Bar. 
Luxembourg:  plans to link fees to results of work. 
Slovakia:  revised recommended tariffs were intr oduced in 2005 by the Ministry of 
 
EN 34  
 EN Profession Recommended prices as @ February 2004 Reforms made or planned since February 2004 
 Lithuania 
Luxembourg (list of criteria that must be  taken into account to calculate price) 
Portugal (list of criteria that must be taken into account to calculate price) 
Slovakia (for use when agreement cannot be reached independently on price) 
Spain  
UK – Scotland (for general business by solicitors)  Justice.  
UK-Scotland:  under review by the Scottish Exec utive Working Party on the Legal 
Services Market in Scotland. As a result of  the review, the Law Society of Scotland has 
agreed to withdraw price recommendati ons and to consult the NCA on a proposed 
alternative. 
 
Notaries Austria (for a small number of other services which are comparable in nature to 
those undertaken by lawyers) 
Belgium (for services where the price is not fixed) 
Portugal 
Slovakia (for other non-reserved areas) 
UK - England and Wales (for Notaries Public) UK: fee guidance was withdrawn by the Notaries Society – the professional body for UK 
Notaries Public, in March 2004 following intervention by the NCA. 
Source: National regulators responses to Commission questionnaire dated December 2004. Where responses were either incomplete o r not received information has b een taken from the 2004 Report, or 
the Stocktaking Report on the new EU Member States, and the country name is shown in italics.  Pharmacists are not included. 
 
EN 35  
 EN Annex 4: Overview of countries and professions with advert ising restrictions and reforms made during 2004/05 or planned  
Profession Effective prohibitio n on advertising 
as @ February 2004 Some advertising restrictions @ 
February 2004 Reforms made or planned since February 2004 
Accountancy 
/audit  France 
Luxembourg (for audit) 
Portugal (for audit) 
Spain (for audit) 
 Belgium  
Cyprus 
Czech Republic (for audit) 
Germany 
Greece   
Hungary (for audit) 
Italy 
Lithuania (for audit) 
Luxembourg 
Netherlands (for audit) 
Poland (for audit) 
Portugal (for non-audit) 
Slovenia (for audit) France:  from 25/3/04 the law now allows personal informative advertising (cold calling 
and comparative advertising are still not permitted). Project also underway to modify the 
ethical code to relax advertising restricti ons contained therein to allow ‘sollicitation’. 
Germany:  review underway of rules of professional body on advertising with the aim of 
relaxing the restrictions. 
 
Tax Consultants 
(where this 
profession exists 
separately)  Poland Germany  
Spain 
  
Architects Cyprus   
Italy 
 Belgium 
Greece 
Ireland  
Luxembourg   
Portugal  Ireland:  professional body withdrew restrictions  in 2004 following intervention by the 
NCA. 
Italy: ethical code was reviewed in 2004 to relax advertising restricti ons contained therein 
in agreement with NCA.  
Engineers Cyprus   
 Greece 
Ireland 
Italy 
Luxembourg Ireland:  restrictions have been  removed following publication of the NCA’s report on 
engineers in 2004. 
Italy:  there are plans to review the ethical code with the aim of relaxing the advertising 
restrictions contained therein 
Legal profession Estonia 
Greece 
Hungary 
Ireland (for barristers only) 
Lithuania 
Poland 
Portugal 
 Austria 
Belgium 
Cyprus 
Czech Republic  
Denmark 
France 
Germany  
Ireland (for solicitors) Denmark:  work is underway on legislation to remove the advertis ing restrictions. 
Estonia:  consideration being given to amending the law to permit price lists to be 
published. 
France:  project ‘décret’ underway to reform the ethical code so that lawyers will not have 
to get ex-ante authorisation from the prof essional body for the way they propose to 
advertise. The décret will also allow lawyers to publicise (provide information) on their 
services to prospective clients via for exam ple a mail shot, but cold calling or canvassing 
will still not be allowed.  
 
EN 36  
 EN Profession Effective prohibitio n on advertising 
as @ February 2004 Some advertising restrictions @ 
February 2004 Reforms made or planned since February 2004 
 Italy 
Luxembourg 
Slovakia 
Slovenia 
Spain 
Sweden 
UK – Scotland (for solicitors only) Germany:  internal review underway of professiona l ethical rules by Federal Chamber of 
Lawyers, including advertising. 
Greece:  new draft Lawyers Law has been proposed and the intention is to review rules on 
‘publicity’ (but not advertising) contained therein. 
Lithuania:  new Law on the Bar relaxed the effective prohibition on advertising to allow 
some limited ‘publicity’ by lawyers e.g. via business cards. Promotional activities by an 
individual lawyer of their pr actice are still  prohibited. 
Portugal:  new law enacted in 2005 modifying the Statute of the Port uguese Bar relaxed 
the advertising rules to allow ‘publicity’ type activities if objective and lawful. 
UK – Scotland:  restrictions are under review by  the Scottish Executive Working Group 
on the Legal Services Market in Scotland. Th e Law Society of Scotland has agreed to 
review the advertising restrictions identifi ed in the review and to consult the NCA on 
proposed alternatives. 
Notaries Czech Republic 
Estonia 
France 
Greece 
Italy 
Latvia 
Lithuania 
Luxembourg Malta  
Poland 
Portugal 
Slovakia 
Slovenia 
Spain Austria 
Germany 
Hungary  
UK – England and Wales (for Notaries 
Public) 
 Italy:  project to elaborate new ethical rules on th e provision of information to the public.  
Pharmacists Cyprus 
France (for prescription only products) 
Greece 
Hungary (for prescription only 
products) 
Ireland 
Lithuania (for prescription only 
products) 
Luxembourg Austria 
Czech Republic 
Finland  
France (for non-prescription products 
only)  
Germany (advertising has to comply with 
professional rules)  
Malta 
Netherlands  France:  plans to ask the NCA for an opinion on the rules on advertising included in the 
professional body’s deontological code.  
Hungary:  plans to review the law on advertising in the pharmaceutical area to bring them 
into line with the revised ethical code wh ich has been reformed and the provisions on 
advertising revised to the satisfaction of the NCA.  
Luxembourg:  plans to incorporate the professional  guidelines on advertising into the 
ethical code and make them bi nding (i.e. the rules are about to  become more restrictive). 
 
EN 37  
 EN Profession Effective prohibitio n on advertising 
as @ February 2004 Some advertising restrictions @ 
February 2004 Reforms made or planned since February 2004 
Portugal 
Spain Poland  
Slovenia  
Sweden  
UK 
Source: National regulators responses to Commission questionnaire dated December 2004. Where responses were either incomplete o r not received information has b een taken from the 2004 Report, or 
the Stocktaking Report on the new EU Member States, and the country name is shown in italics.   
 
EN 38  
 EN Annex 5: Cases opened by national compet ition authorities under the EC competition ru les since February 2004 covering the six p rofessions 
under study  
 Country Profession Restriction Case status 
Fixed and recommended prices Austria Architects and engineers 
(Austrian Builders Association) Recommended prices It was found that the ‘non-binding’ 
recommended price scales were in fact 
binding in effect and contrary to Art.81. 
Decision by the Cartel Court that the 
Bundesinnung Bau (Austrian Builders 
Association) has to revoke the 
recommended price scale and change it into 
a guideline.  
 Netherlands Lawyers 
(Dutch Bar Association) Restrictions on fee agreements Open  
 Netherlands Pharmacies 
(Dutch Association of Pharmacy) Recommended prices, market sharing 
and joint selling/buying agreements Open  
Advertising restrictions Hungary Accountants  
(Hungarian Chamber of Accountants) Advertising restrictions  Open 
 Hungary Lawyers  
 (Hungarian Bar Association) Advertising restrictions Open 
 Slovakia Lawyers  
(Slovak Chamber of Advocates) Advertising restrictions  Open 
 UK Solicitors 
(The Law Society of Northern Ireland) Advertising restrictions Closed  due to satisfactory voluntary 
resolution of the competition concerns by 
the Law Society. 
Business structure restrictions Germany Tax consultants 
(Federal Association of Tax Consultants) Collaborative restrictions Closed in Feb 05 due to satisfactory 
voluntary resolution of the competition 
concerns by the Association. 
Other UK Barristers 
(General Council of the Bar of England and 
Wales Mutual Indemnity Fund) Bar obligation on members to contribute 
to the Mutual Indemnity Fund for 
professional insurance Closed in March 05 - insufficient evidence  
 UK Solicitors 
(Law Society of Scotland) Law Society requires members to 
purchase professional insurance from the 
Law Society’s Master Policy Closed in Feb 05 – insufficient evidence 
N.B. A further case has just been reported as being opened by th e Czech Republic. This relates to advertising restrictions by t he Czech Chamber of Pharmacists.