Restrictive legal practices

Restrictive practices in the courts
Protectionism in legal services

Nature

Licensing regulations in both developed and developing countries severely limit the areas in which non-nationals may practice law. By and large, foreign law firms are, in these cases, only permitted to provide advice on their respective national law or on multinational aspects of the law. Appearances in court proceedings are generally still excluded. Furthermore, an elaborate screening and reviewing process can make it difficult to obtain work permits. In a number of countries, citizenship of the country is required for inscription on the professional register, which is necessary in order to practice.

Incidence

Restrictive legal practices are reported across a range of sectors and jurisdictions, with the Organisation for Economic Co-operation and Development (OECD) noting that such practices can increase prices by up to 20% in professional services markets. The European Commission’s 2021 report identified persistent restrictive regulations in legal professions in over half of EU member states, impeding competition and cross-border service provision.
In 2017, the Australian Competition and Consumer Commission (ACCC) investigated restrictive legal practices in Queensland, where exclusive licensing requirements prevented qualified interstate lawyers from representing clients, limiting consumer choice and inflating legal costs within the region.

Claim

Restrictive legal practices undermine justice and equality, perpetuating systemic discrimination and hindering progress. These practices create barriers for marginalized communities, stifling their voices and opportunities. By prioritizing outdated laws over human rights, we risk entrenching inequality and eroding public trust in the legal system. It is imperative that we confront and reform these practices to ensure a fair and just society for all. Ignoring this issue only perpetuates injustice and societal division.

Counter-claim

Restrictive legal practices are often overstated as a significant issue. In reality, they serve essential functions in maintaining order and protecting rights. The legal system is designed to ensure fairness and accountability, and any perceived restrictions are merely safeguards against chaos and abuse. Focusing on these practices as a major problem distracts from more pressing societal issues. Instead of lamenting legal constraints, we should appreciate the stability and protection they provide in our lives.