Professional services
Competition and professional services – overview
Highly regulated sector
Professional services (also known as "liberal professions") can be loosely defined as occupations requiring special training in the arts or sciences: lawyers, notaries, engineers, architects, doctors, accountants, etc.
These professionals form an integral part of the EU economy. The services they provide are essential to businesses and consumers, and this has a knock-on effect on the competitiveness of other sectors.
Some of these professions are closely regulated by national governments and professional bodies, with restrictions on:
- number of entrants into the profession
- rates charged and billing arrangements (e.g. contingency fees , which are to be paid by professionals to their respective self-governing bodies in case they charge their customers below established minimum prices).
- organisational structure of businesses providing professional services
- exclusive rights enjoyed by practitioners
- ability to advertise
Such regulation can affect competition and may fall under EU antitrust rules.
Application of competition rules
EU competition rules apply to this sector, and the European Commission has 3 tools to make sure they are followed:
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Advocacy
Encouraging professional bodies to use their self-regulatory powers to benefit not just their own members, but consumers as well. For more details, see the Commission reports.
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Case work
Responding to complaints alleging infringements of EU state aid law with regard to professional services. Applying EU competition rules has promoted reform. One example: Commission condemns Belgian architects’ fee system.
See a list of Commission decisions and case law relating to professional services.
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Cooperation with other authorities
Coordinating work with national competition authorities through the European Competition Network. Many national authorities are reforming the regulatory landscape for professional services by, for example, applying EU competition rules. See also overview of national competition authorities' advocacy and enforcement activities relating to professional services.
Inside the Commission, the Directorate-General for Competition works closely with Directorates-General dealing with the internal market, enterprise and industry and consumer affairs. The Commission also discusses reform with professional bodies and consumer organisations.
The European Parliament supports the Commission's efforts to eliminate anti-competitive regulation, for the benefit of the EU economy and consumers.
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