The imposition of scale fees for lawyers in Italy hinders foreign law firms from competing effectively in the country, the European Court of Justice (ECJ) ruled this week.



It said scale fees deprive non-Italian lawyers of competing by undercutting, and also restrict client choice.



However, the ECJ said such a restriction could be justified if necessary to meet the objectives of consumer protection and the proper administration of justice. It would also have to go no further than what is necessary to attain those objectives.



The ECJ said the Italian courts should make the decision and look at whether the objectives could be attained by other means, including through professional rules.



It also ruled that the scale fees did not breach competition law as they were ultimately set by the government, rather than the Italian bar.



Jonathan Goldsmith, secretary-general of the Council of Bars and Law Societies of Europe (CCBE), said: 'We are very pleased that the court has once again emphasised the importance of the role of lawyers in serving the objectives of consumer protection and the proper administration of justice.'



By Neil Rose