Vilnius, 11 June 2025 — Lithuania’s Competition Council is calling on the Government and the Ministry of Justice to amend the Law on the Bar, arguing that its current definition of legal practice violates European Union law and established court interpretations.
The Council has raised concerns over a provision in the Bar Law which states that legal services provided by lawyers are not considered a form of commercial economic activity. According to the Council, this definition is inconsistent with EU law, the case law of the Court of Justice of the European Union (CJEU), and the interpretations of both Lithuanian courts and national competition legislation.
In a formal letter to the Government and Justice Ministry, the Competition Council stressed that the CJEU has repeatedly recognized legal practice—including that of lawyers and other liberal legal professions—as economic activity, regardless of its technical complexity or the fact that it is regulated by national laws. Such regulation, the Council noted, does not exempt legal services from EU competition rules.
The Council warned that the current legal framework creates a risk of anti-competitive decisions by lawyers or their professional associations, and potentially even by legislators, under the mistaken assumption that competition law does not apply to the legal profession. This could lead to harmful consequences for the market and consumers.
The Council also noted practical problems arising from the ambiguity. In cases related to the coordination of state aid, some authorities have questioned whether legal services fall under the scope of EU state aid rules. Misinterpretation could result in the unlawful allocation of aid to lawyers or law firms—aid that may later be subject to repayment with interest if deemed incompatible with EU law.
To prevent such legal and financial risks, the Competition Council has recommended that the Government and the Ministry of Justice initiate a change to the Bar Law and remove the provision stating that legal services are not a form of commercial economic activity.
