Lawyers and accountants face competition review

United Kingdom

Gordon Brown and Stephen Byers ordered a review of monopolies and restrictive practices in the professions, including lawyers and accountants. John Bridgeman is to conduct the review, in particular into whether the two professions need to be brought under the umbrella of the Competition Act 1998, from which they currently enjoy the benefit of an exemption.

The Chancellor's move was prompted by compelling evidence showing that price inflation was higher in the service sector, possibly as a result of restrictive practices distorting competition.

The DGFT will examine three areas: entry to the profession, advertising and price competition, and laws compelling people to use qualified professionals for certain transactions (such as rules requiring consultation with a solicitor before contacting a barrister).

(Daily Telegraph, 23 March 2000)