The European Commission has intervened on behalf of a coalition of law firms attempting to set up practices in Bulgaria. DLA Piper and CMS Cameron McKenna, along with Austrian practices Wolf Theiss, CMS Reich-Rohrwig Hainz and Cerha Hempel Spiegelfeld Hlawati complained to the commission in November, accusing the Bulgarian government of failing to comply with EU regulations covering freedom of establishment.
Current Bulgarian rules allow lawyers to work only through Bulgarian partnerships or Bulgarian attorney companies. These may consist of Bulgarian-qualified lawyers only or foreign EU lawyers registered in Bulgaria for more than three years. The rules prevent EU lawyers with less than three years from being a partner and prevent non-Bulgarian law firms establishing in the country.
The five law firms argue that such rules are anti-competitive.
In its response to the complaint, the commission has written to the government in Sofia asking it to clarify its position on what the lawyer qualification is for those wanting to practise in the country; why lawyers from other countries do not benefit from the same regulations as Bulgarian practitioners; and why European law firms cannot use their own names in the country.
In November, the Law Society sent a delegation to Bulgaria to raise the issue with the Council of Bars and Law Societies of Europe.
DLA Piper practises in Bulgaria through Rizova & Partners, which is part of DLA. It has been in Bulgaria since September 2006, with 14 lawyers working at its Sofia offices.
Peter Valert, DLA managing partner at its Prague office, said: ‘We are pleased with the EC decision. Bulgaria is part of the EU. The commission has recognised there is an issue.’
Richard Clegg, partner at Wolf Theiss, said: ‘We look forward to a positive resolution of the concerns identified by the commission and the Law Society.’
Bulgaria has two months to clarify its position, but if the EC is not satisfied with its response the case could go to the European Court of Justice.
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