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Overview
A distinguishing characteristic of Belgium is the division of its languages. Flemish is the language spoken in Flanders, to the north, whilst the inhabitants of Wallonia, in the south speak French, and there is a German speaking minority in the east. The 29 Bars of Belgium maintains a list system relating to the standing of individual lawyers and their rights of audience, setting out which individuals can advise on Belgian law, and whether they are members of the French, German, or Flemish-speaking Bars. Many lawyers are bilingual, or trilingual. The issue of language is important in the Kingdom, as some firms lean naturally towards the Francophone, or Flemish communities.
Political turmoil had been a constant in the country prior the resignation of Yves Leterme and his government in December 2008, given difficult negotiations in forming a government following the 2007 general election. King Albert II accepted Leterme’s resignation following a Belgian Supreme Court report on allegations that Leterme’s aides had sought to influence a court ruling connected with the break-up of Fortis. This collapse was the country’s third political crisis in under a year, against a backdrop of deep uncertainty, with the economy sliding into recession and investors’ confidence at a low as a result of the global financial crisis.
2008 was a turbulent year for the Belgian banking sector with two government-backed bank bailouts. Following a 2008 Fortis take-over of ABN AMRO in a consortium with Santander and The Royal Bank of Scotland, mutual exposure to the credit crunch culminated in a €11.2bn rescue plan. The plan led to the disposal of Fortis’s stake in ABN AMRO, and the sale of a 75% share in Fortis to BNP Paribas.
Nor was Fortis alone; Franco-Belgian bank Dexia received a €6.4bn bailout package from the Belgian, French and Luxembourg governments.
Cleary Gottlieb Steen & Hamilton LLP acted for BNP Paribas on its €14.5bn acquisition of Fortis and also represented Dexia on its recapitalisation plan. Linklaters played a role advising Fortis on its €71.1bn joint bid for ABN AMRO with Allen & Overy LLP acting for ABN AMRO. CMS DeBacker acted for the largest syndicate of shareholders in Fortis Holding to advise on the transfer of Fortis’s business lines to BNP Paribas. However, the Brussels Court of Appeal froze the deal with BNP in December 2008, ordering that shareholders vote on the transaction, leading ultimately to the political turmoil described above.
Whilst Magic Circle, international and large domestic heavyweights have been able to capitalise on their impressive reputations in the market, 2008 has also seen the rise of smaller, sometimes niche firms making their mark on the market. Laun has built up an impressive roster of clients and a devoted following; and boutique firm Greenille Attorneys received a tremendous amount of positive feedback. The Belgian arm of Allen & Overy LLP saw previous Brussels managing partner Wim Dejonghe, highly regarded by his clients, promoted to global managing partner, and with the equally well respected Dirk Meeus elected as his successor.
Partner moves between firms has been fairly subdued. Van Bael & Bellis took corporate partner Michel Bonne and an associate from Freshfields Bruckhaus Deringer, and Lydian suffered a double blow with the departures of Vincent Dirckx and Carl Dotremont. Also notable was Axel Craeybeckx’s move from Allen & Overy LLP to Lydian.
In EU terms, one significant case was the appeal from the Court of First Instance by Sony and Sony BMG, represented by Cleary Gottlieb Steen & Hamilton LLP, in a landmark case before the European Court of Justice. The decision unusually set aside the CFI’s judgement previously annulling a 2004 European Commission ruling approving the formation of Sony BMG’s joint venture. The case confirmed that new evidence introduced at the end of an investigation could convince the Commission of the merits of a merger- even where the Commission disagreed
The case also provided clarification on the standard of proof to be applied in merger decisions. Most firms involved with EU merger control reported that the final quarter of 2008 saw a considerable drop in both Phase I and II merger control notifications. Those firms with very strong merger control credentials, the likes of Freshfields Bruckhaus Deringer, Linklaters, Skadden, Arps, Slate, Meagher & Flom LLP, Arnold & Porter LLP, and Ashurst LLP(amongst others), may be affected in the short term. Longer term, however, deals will still be done, as market sectors consolidate. Such developments place a premium for all firms to be able to turn to areas where competition law is used not just to get the deal done, but to act offensively, as well as defensively.
Behavioural competition law, such as Article 81 and 82 infringement actions, cartels, sectoral enquiries, abuse of dominance, and private actions for damages, remain highly important. With the European Commission upping the pace on cartel enforcement, all firms remained busy, and those involved in the larger cartels especially so. Clifford Chance, Van Bael & Bellis, White & Case LLP Avocats Advocaten and Allen & Overy LLP, to name a few, remain involved in the most technically challenging of cases.
State aid, however, as a subset of competition law will also take up the slack that a hiatus in merger control may leave behind. The relaxation of state aid rules announced by the Commission will not be permanent. Slaughter and May, and their best friends Hengeler Mueller, Bredin Prat, Uría Menéndez and Bonelli Erede Pappalardo, working with their colleagues in their national capitals, saw an increase in such work. So did firms with recognised specialists in this area, like Van Bael & Bellis White & Case LLP Avocats Advocaten, Gide Loyrette Nouel A.A.R.P.I., and Lovells LLP.
One aspect of the Brussels legal market has been the progressive development of US law firms. Cleary Gottlieb Steen & Hamilton LLP, of course, almost do not qualify, as a pillar of the Belgian legal establishment. The overall ensemble, however, remains impressive, with the quality of regulatory, trade, and competition lawyers alike being very strong. White & Case LLP Avocats Advocaten, Jones Day, Howrey LLP Covington & Burling LLP, O’Melveny & Myers LLP, Sidley Austin LLP, and Hogan & Hartson LLP all exemplify this trend.
The global nature of the competition law field means many firms in our rankings compete not just against their Brussels peers, but further afield. Freshfields Bruckhaus Deringer, at times, found itself in 2008 against London’s Akin Gump Strauss Hauer & Feld, Amsterdam’s Stibbe, Dublin’s A&L Goodbody, and Washington DC’s Shearman & Sterling LLP. Many firms also have close synergies between their head offices and Brussels such as Beachcroft LLP. The overall strength of a firm’s network can be a factor for clients: one said of Linklaters, that ‘ their network in Europe has been very useful to us, having operations in multiple European jurisdictions’.
The steady development of Belgian competition law has continued following the arrival of Jacques Steenbergen as Director-General of the Belgian Competition Authority. As a result, Linklaters, Allen & Overy LLP and Stibbe remain busy alongside Eubelius, Van Bael & Bellis and Cleary Gottlieb Steen & Hamilton LLP. One firm that will wish to join them will be Olswang following the hire of Koen Platteau from Loyens & Loeff. The move was seen as boosting Olswang’s domestic competition law offering significantly.