Coca-Cola Israel Fined 1.56 Million NIS for Consumer Price Interference
Coca-Cola Israel faces a 1.56 million NIS fine by the Competition Authority for interfering with consumer prices, following an earlier 18 million NIS penalty for food law violations.
Months after paying an 18 million NIS fine for food law violations, the Central Bottling Company (Coca-Cola Israel) faces an additional 1.56 million NIS fine for unlawfully interfering with consumer prices, the Israel Competition Authority ruled.
According to the draft penalty notice sent to the company, between 2021 and 2022, the company recommended retail prices to various large retailers or otherwise intervened in consumer pricing for its products. This follows an agreement last February in which the company paid 18 million NIS for violations of the Food Competition Enhancement Law regarding display spaces, retail price recommendations for Tara dairy products which it owns, and improper payments to retailers.
Broad Antitrust Investigation
The current fine stems from a comprehensive review launched by the authority in early 2022 examining agreements between major food suppliers and large retailers. As part of this enforcement procedure, the Competition Authority reached agreements with major suppliers totaling over 150 million NIS in financial sanctions.
"The Competition Authority is currently examining the conduct of the country's major retailers and their compliance with the provisions of the food law," officials stated.
Background on Monopoly Regulations
When the agreed sanctions were imposed six months ago, the commissioner excluded these specific violations to investigate whether they breached monopoly regulations imposed on the Central Bottling Company when it was declared a monopolist in 1998. Since the investigation found no evidence of direct monopoly violations under that specific declaration, the authority proceeded with the current enforcement action under the food laws.
