Article written by Laetitia Ponde Nkot
Studies have shown that Brexit has eased the market for competition law in the UK throughout the next year.
The semi-annual ‘Gross Legal Product’ report forecasts competition law demand to grow 17% this year and 32% in 2023, while commercial law demand extension will be more stable, with a rise of 1% this year and 4% next year.
LexisNexis stated the intensification for competition lawyers is induced by the UK’s withdrawal from the EU, the Competition and Markets Authority’s (CMA) tackle on antitrust enforcement and investment matters related to national security and sustainability.
From 1 January 2021, sole the UK Competition Act 1998 (CA98) handles agreements and business conduct that have an impact on trade within the UK. The CMA and competing regulators can no longer enforce EU competition law in the UK unless it could have a consequence on intra-EU trade; and in January 2021, the CMA issued guidance to help businesses and trade associations ameliorate understanding how competition law implements sustainability agreements.
Competition and Commercial lawyers are probable to be busy with a bounce in commercial activity, overseas investment in the UK, and new business start-ups, LexisNexis declared.
Contrary to this, demand for corporate law-associated services is expected to fall sharply this year after an exceptional 2021, partly sustained by a record year for mergers and acquisitions projects.
Due to concerns about rising inflation and the prospect of a global recession, negotiations are frustrated. LexisNexis anticipates that requests for corporate legal services will diminish by 22% in 2022 before hiking slightly by 1% in 2023.
Dylan Brown, Content Lead at LexisNexis, said: ‘Today’s economically uncertain times have caused a great deal of unrest in the corporate world. There’s a constant barrage of conflicting reports coming out, and despite everything still being up in the air, the default setting for most businesses right now will be risk aversion.’
He added: ‘It will be up to lawyers to instil confidence by guiding clients through the months and years ahead with accurate insights on economic activity, new legislation and regulations, and worthwhile growth opportunities.’