Financial sanctions were imposed on Strauss and Weiler. Justicial Reform may lower costs of living.

The competition commissioner imposed a financial sanction on the Strauss and Weiler companies, and their senior officials, for an illegal merger. The Strauss company will be required to pay approximately 111 million NIS, and the Weiler farm company will be required to pay approximately 1 million NIS, according to the press release of the Competition Authority.

First time

The illegal merger harmed competition by halting Weiler’s progress toward entering a market dominated by one player, and into which Strauss also sought to enter. This is the first time a sanction has been imposed in the maximum amount set by law.

That says a lot about the major problem of the skyrocketing high prices for food in Israel. There are laws, but they are not really executed. No actions are seen from the High Court which loves according to critics to intervene in even the smallest issues, given it harms the right-wing government and Netanyahu.

The press release further explains: “According to the Economic Competition Law, companies that wish to merge are required to contact the Commissioner of Competition in advance and obtain her consent to the merger, before they start executing it. The law prohibits any act involving a merger, full or partial until the decision of the supervisor is received and subject to it.”

And concludes: “Strauss is a public company engaged in the development, production, marketing, sale and distribution of food products. Strauss is one of the dominant suppliers of food products in Israel, defined as a “large supplier” according to the Food Law, and has a declared monopoly in several markets in the food sector.”

Justicial Reform

Monopolies are generally to the disadvantage of the economy and to the consumer. The oligopolies and monopolies in Israel must be abolished by really opening the markets to foreign players. The monopolies and oligopolies are obviously the blind spot of the justicial system and by that co-causing the high costs of living in Israel. Israel needs a full justicial reform.

Israel needs a free market. Today Israel’s economy resembles too much to a social economic model.