The European Parliament will next month vote on plans to grant legal privilege to in-house legal advice in merger investigations, for which European in-house lawyers have been campaigning for many years.

Currently, in competition proceedings, the European Commission is not obliged to regard as privileged communications requesting or giving in-house legal advice.

However, at committee stage of the proposed merger regulation, MEPs voted in favour of allowing privilege.

The MEPs recognised that professional regulation of in-house lawyers is stricter in some member states than others.

Privilege would therefore only apply to the advice of lawyers who are 'properly qualified and subject to adequate rules of professional ethics and discipline, laid down and enforced in the general interest by the professional association to which the legal counsel belongs'.

In some countries, in-house lawyers are not allowed to join the law society or bar.

Scottish lawyer Colin Anderson, vice-president of the European Company Lawyers Association (ECLA), which has led lobbying on the issue, said the proposals would be 'a great result' for in-house counsel, as it would enhance their status.

The Council of Bars and Law Societies of Europe has expressed disquiet about the terms 'proper qualification' and 'professional association', saying they are too vague and could allow lawyers to be regulated by a body which is not a bar or law society.

Mr Anderson said the national associations affiliated to ECLA had proper standards of qualification, conduct and discipline.

England and Wales is represented by the Law Society's Commerce & Industry Group.

If approved, the amended regulation will be considered by the Council of Ministers.

Neil Rose