Bulgaria is to amend its anti-competitive Bar Act and allow international law firms to practise within its borders following a two-year campaign by City firms and the Law Society.
Bulgaria’s Bar Act, which will now be amended, prohibits international law firms from practising under their own names, and requires them to use a local firm’s name instead. Only Bulgarian citizens are permitted to practise local law.
The act has been rigorously enforced, with national firm DLA Piper and City firm CMS Cameron McKenna both fined for insisting on their right to practise in the country. These fines have now been overturned on appeal.
The two firms formed part of the campaign to persuade Bulgaria to change its rules, along with the Law Society.
Robert Heslett, then vice-president of the Law Society, visited the president of the Bulgarian bar in November 2008 to protest at the protective provisions of the act. The European Commission issued a caution to Bulgaria for infringing the European directive against anti-competitive practices. The British, US, Austrian, Greek and Finnish ambassadors to Bulgaria also lobbied the Bulgarian authorities. Following the election of a new government in summer 2009, the Bulgarian minister of justice has now agreed to reform the Bar Act.
DLA Piper managing partner in Sofia Anna Rizova-Clegg said: ‘I am pleased that the (Bulgarian) government accepts that EU law is now applicable in Bulgaria.’
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