Luxembourg, 19/02/2002 (Agence Europe) - The European Court of Justice has confirmed the validity of Dutch legislation prohibiting two members of the Bar, Wouters and Savelbergh from collaborating with the accountancy firms Arthur Anderson and Price Waterhouse, in the Netherlands. Prohibition of such a partnership produces effects restrictive of competition on the market in legal services, says a press release. In addition, it affects trade between Member States in that accountancy firms seeking partners among lawyers are generally international groups established in several Member States. However, the press release goes on, there may be a degree of incompatibility between the 'advisory' activities carried out by a lawyer and the 'supervisory' activities carried out by an accountant. Accountants, who perform a task of certification of accounts, are not, in the Netherlands, subject to a duty of secrecy comparable to that of a member of the Bar. Under these circumstances, says the Court, it was reasonable for the Netherlands rules to impose binding measures, despite the effects entailed which are restrictive of competition, because those measures are necessary for the proper practice of the legal profession.. The Court considers that the Dutch Bar has to be considered as an association of undertakings in the sense of Community competition law, in the sense that it is composed solely of members of the Bar and that it is not held to take decisions in the public interest.
EU Bar Council satisfied with ruling
The CCBE says it "welcomes" the Court ruling. Its President, John Fish declared: "We are satisfied with this outcome which, we believe, is clearly in favour of the public interest. The CCBE had very good reasons to warn against the problems inherent in multi-disciplinary partnerships." The Bar Council points as proof to "the recent collapse of Enron" in the United States: this affair illustrates the conflicts of interest that may arise between members of the Bar and accountants when they work for the same client". "It is precisely these dangers that the CCBE saw in its policy", the European Bar Council added.