Decisions of the ‘Technical Chamber of Greece’ setting minimum fees for architects and engineers – alleged violation of Articles 1 of the Greek Competition Act and of Article 101 TFEU
Athens, 26 July 2010
PRESS RELEASE
Decisions of the ‘Technical Chamber of Greece’ setting minimum fees for architects and engineers – alleged violation of Articles 1 of the Greek Competition Act and of Article 101 TFEU
Following a Statement of Objections, which was sent today to the ‘Technical Chamber of Greece’ (TCG), the professional association for all architects and engineers established in Greece, the Hellenic Competition Commission will hold a hearing in order to examine whether there has been an infringement of Articles 1 of the Greek Competition Act and 101 TFEU. The case concerns the setting of minimum fees by two decisions of the TCG governing body, through the application of a ‘presumed minimum construction cost’ per square metre for all private construction projects.
After reviewing the relevant legislative and regulatory framework, as well as the specific TCG decisions, the Statement of Objections essentially contends that the decisions of the TCG governing body, without any express conferral of powers by statute, assumed the role of the State and set the minimum construction cost for all private construction projects. The adoption of minimum fees by the liberal professions is one of the most serious violations of competition law.
According to the Statement of Objections, TCG’s decisions de facto replaced previous state regulatory measures that had set the so-called ‘Common Starting Price’ for the calculation of architects’ and engineers’ fees in all of Greece at 44 Euros per square metre. After the adoption of the TCG decisions in 2006 and 2007, this number was essentially increased to 105 Euros for 2007, 110 Euros for 2008, 115 Euros for 2009 and 118 Euros for 2010.
The issuing of a statement of objections does not bind the Hellenic Competition Commission and is without prejudice to its final decision. The Hellenic Competition Commission will decide upon the case, after an oral hearing and after review of the evidence and of the parties’ arguments.
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