The Knesset plenum approved this evening (Monday), in second and third readings, a bill promoted by Economy Minister Nir Barkat that seeks to minimize encroachment on parallel and personal imports through huge fines up to 100 million NIS.
The new law will henceforth prohibit direct importers from performing an act as a result of which parallel imports, and consequently competition in a market, may be harmed. An official importer who violates the law will face a fine of up to 100 million NIS.
The new law states that in the event of a violation of the law, the competition commissioner may impose financial sanctions amounting to 8% of the company's turnover, up to a maximum amount of approximately 100 million NIS. The amount of the financial sanctions will be calculated according to the circumstances of the case, and mainly the degree of damage to competition inherent in the violation.
Violations are defined as "an act as a result of which parallel imports may be harmed and as a result competition in the industry may be harmed, or an act whose main purpose is prevention or reduction of competition on the part of parallel imports." This prohibition concerns any act whose main purpose is the prevention or reduction of parallel imports.
Thus, for example, stipulating commercial terms, changing commercial terms, interfering with the retailer regarding different marking of the goods, refusing to provide goods or services, and reporting on goods originating from parallel imports in a way that allows monitoring of the supply chain of that goods can all be considered violations.
Economy Minister Nir Barkat commented: "This is an important day in our war against the monopolies and cartels. Starting today, a large importer who tries to harm parallel importers will pay a fine of up to 100 million NIS. Those who try to harm the competition and avoid lowering prices in Israel will pay a very high price. Gone are the days when the monopolies who control the public do whatever they want. This is one step in a series of important steps that we are leading with the aim of fighting those who defraud the public. This law will allow the introduction of parallel import products, increase competition, and lower prices."