The Israel Competition Authority announced today that Yochananov's marketing chain owner and CEO Eitan Yochananov, his deputy Elad Harazi and Superbariket supermarket chain manager Ephraim Tshuva, will hold a pre-indictment hearing on suspicion of cartel arrangements. Yochananof's group itself will also be given a hearing.
In addition, the Israel Competition Authority also announced that the CEO and owner of the Victory supermarket chain, Eyal Ravid, is also suspected of committing additional crimes related to cartel arrangements, following public comments he made.
Victory and Yukhananov have notified the Tel Aviv Stock Exchange (TASE) of the Israeli Competition Authority's announcement.
Ravid, who has been investigated six times by the Competition Authority in recent years, is suspected of making monopolistic arrangements with Harazi, Yochananov's executive vice president, under which they would not offer promotions to consumers while the market was stagnant, so that there would be no promotions. For consumers during a market recession. It won't be a hit to their market share. This included coordinating prices between chains so that prices would not fall. Ravid and Harazi are suspected of cartel crimes, while Yochananov is suspected of administrative liability crimes.
Another allegation against Ravid is that prices are fixed through suppliers and not directly. The Law on Promoting Competition in the Food Industry prohibits retailers from interfering in prices for another retailer's consumer. Section 6 of the Act states that a retailer will not dictate to a supplier or interfere with the question of the price charged by another retailer for a good.
The Competition Authority suspects that Ravid coordinated with suppliers to other retailers, particularly Rami Levy and Yukhananov, regarding the price increases. In the conversations intercepted by the Competition Authority, it emerged that Ravid asked suppliers to ensure that prices did not rise. These suppliers include Dr. Fisher, House of Hachita and Schistowitz. The Competition Authority confirms that the companies are not suspected in this incident, since the ban applies to retailers.
This is the first time that the Competition Authority has implemented criminal law under the Food Law. Until today, enforcement has been done administratively through the imposition of fines.
advertisements. Nati Simhouni, Assaf Shubinsky and Assaf Klein, representatives of Ravid and Victory, said: “We received the letter with doubts summoning the company and Mr. Ravid to a hearing at the Competition Authority. Our clients are convinced that there was nothing wrong with their actions, and we believe that after we announce our position at the hearing, the authority will reach a conclusion.” “To an informed decision that there is no reason to prosecute our client, you will order the case closed.”
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Presumption of innocence: There are only suspicions against Eitan Yochananov, Elad Harazi, Eyal Ravid, Silsila Yochananov, Victory and Super Barket and they have not been convicted of anything related to them and have the right to the presumption of innocence.
Published by Globes, Israel Business News – en.globes.co.il – on June 19, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.