European Commission closes infringement case against Cyprus Bar Association over restrictive fee arrangements

The European Commission has ended its competition investigation against Cyprus over a minimum fee arrangement for out of court legal services including drafting contracts, drawing up wills, estates administration and company registration.

The Commission raised concerns in April 2018 that Cyprus legislation, by encouraging the Bar Association to adopt the minimum fee arrangements, could encourage conduct that might prevent, restrict or distort competition in the internal market.  As such, the Commission raised concerns that Cyprus could be in breach of Article 106 TFEU whereby member states must refrain from encouraging undertakings or associations of undertakings to favour or encourage anti-competitive behaviour that would breach Article 101 of the TFEU.

Cyprus amended its legislation in response to the Commission’s investigation.  The Commission also closed a parallel investigation into the minimum fee scale arrangements of the Cyprus Bar.

http://europa.eu/rapid/press-release_MEMO-18-6247_en.htm