The fighter against monopolies: "Why on earth does a bank chairman write to another: 'Let's meet'? It is very disturbing"
Giant CEOs, retail chain owners, and the most expensive lawyers in Israel — Adv. Yael Shainin has interrogated them all in court. Summarizing five years as the legal advisor to the Competition Authority, she notes that while businesses are becoming more creative, the regulator remains on their trail.
"Why on earth does a bank chairman write to another bank chairman on WhatsApp and tell him 'Let's meet'?" says the legal advisor of the Competition Authority, Adv. Yael Shainin, in a farewell interview. "This is not an accepted practice. We are talking about competitors in a non-competitive market with clear rules. It is very disturbing; it is fertile ground for prohibited coordination. They are not supposed to conduct personal conversations but to act in regulated, documented forums with legal accompaniment. We requested the correspondence, and they are obligated to transfer it."
Shainin's words follow the exposure by Globes that bank heads were working to replace the CEO of the Association of Banks, Eitan Madmon. Shortly after, the chairman of the First International Bank, Ron Levkovich, mistakenly published a screenshot of a correspondence between bank chairmen indicating their desire to hold a meeting.
"Companies are afraid and the method is becoming more sophisticated"
Shainin (44) has spent 16 years at the Authority, managing 30 lawyers over the last five years. "I have cross-examined VPs at the Ashdod Port and the manager of the Electric Company. We are up against the heads of the economy and the best lawyers money can buy. It makes us better," says Shainin.
According to her, Israel is an exception globally regarding criminal enforcement in competition law. "Most countries only impose fines. The only ones that conduct criminal proceedings are the USA, Ireland, Australia, and England."
The flagship case: food market price-fixing
One of Shainin's precedent-setting decisions was filing an indictment against the owner and CEO of the Victory chain, Eyal Ravid, in the food market price-fixing affair. "Classic coordination has become impossible," says Shainin. "In the first cartel cases, there was a signed contract. Then they moved to emails, then to WhatsApp. They know there is wiretapping. The next stage is public statements. The effect is like that of a cartel, and the method is becoming more sophisticated. Our job is to be on their trail."
She rejects claims of a populist investigation: "We closed cases against most companies. If there is evidence, we file; if not, we close. My job is to convince the court. If Ravid is convicted, he may face prison time; according to rulings, 9 months is the minimum."
Representatives for Eyal Ravid, Yohananof, and Super Barakat deny the charges.
Regulatory independence
In recent years, Minister of Economy Nir Barkat has sought to dismiss the Commissioner, Adv. Michal Cohen, claiming the Authority is too weak. "It is important that we listen to criticism, and we do," replies Shainin. "But we will not do everything they say we should. The Competition Authority knows how to stand up to big challenges, maintaining professionalism and independence from political and commercial pressures."
Mergers and the value of information
Israel sees about 300 merger requests annually. "Today, information about users is a dramatic asset that companies buy," Shainin explains. "Often, the merger is not for the physical product but for the data. A credit card company has a wealth of information that can be used to decide where to open businesses and what consumer preferences are."
Shainin concludes that she plans to take a break to spend time with her children and complete her doctorate.
Presumption of innocence: Eyal Ravid's trial is ongoing; he has not been convicted.
