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Israel approves new law to weaken exclusive importers

Source: Xinhua| 2018-07-19 03:59:50|Editor: yan
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JERUSALEM, July 18 (Xinhua) -- The Israeli parliament (Knesset) approved on Wednesday a law that will restrict exclusive importers' power who tend to prevent fair competition in the Israeli market, said Israeli Minister of Economy Eli Cohen.

The new bill has authorized the Israeli Antitrust Authority to force exclusive importers to take direct actions to restrain themselves in cases they misuse their power and control over the market by preventing parallel imports or personal imports.

Now it will be more difficult for exclusive importers to exploit their power to deny other importers to access retail distribution channels.

It will limit the phenomenon of "Geo-Blocking" situation in which exclusive importers prevent Israeli customers the access to foreign online websites where they can purchase directly from a manufacturer, according to the ministry.

Eli Cohen, the sponsor of the law, said in a statement on Wednesday "one of the main reasons for the high cost of living in Israel is the authorized importers who intentionally block competition."

"Importers are taking advantage of exclusivity in representing international brands in favor of high prices in the Israeli market, leading to unreasonable price gaps between Israel and the rest of the world," said the minister.

Ministry of Economy's examination of toiletries, for example, found a significant price gap of 48 percent between Israel and various countries around the world. It was found that parallel import decreased prices up to 30 percent.

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