DLA Piper and CMS Cameron McKenna have been hit with fines in Bulgaria following a hearing by the country's competition commission last week (22 July).

The commission ruled on Monday (28 July) that the firms are in breach of the country's competition rules.

CMS Cameron McKenna received the biggest fine – some BGN50,000 (£20,000) – with DLA Piper receiving a fine of BGN40,000 (£16,000). The local arms of Cerha Hempel Spiegelfeld Hlawati and CMS Reich-Rohrwig Hainz have also been fined.

About 15 local firms, including market leaders Borislav Boyanov & Co and Djingov Gouginski Kyutchukov & Velichkov, submitted two separate complaints to the local bar association and the country's competition commission claiming unfair competition on the grounds that the firms were in breach of the Bulgarian Advocacy Act.

Borislav Boyanov, managing partner of Borislav Boyanov, said: "The law is simple and clear. Firms that perform legal services while not complying with the rules should be penalised. We are in favour of foreign competition because it improves the legal environment and increases the standard of our work; we just want everyone to practise under the same rules."

The international firms targeted argued the rules – which could ban them from practising in the country under their brand name – do not comply with European Union (EU) directives. Peter Valert, DLA Piper's head of Prague and Sofia, said the firm will appeal to the Supreme Administrative Court. This could take up to a year, during which time the firm is not intending to pay the fine or stop practising.

He said: "We still feel we are compliant with EU law. We hope the Supreme Administrative Court will recognise this, but we are not very hopeful. I do feel this is an attempt to restrict competition by local law firms."