The Antitrust Authority investigation of Tnuva Food Industries Ltd. has ended with a whimper: Antitrust Authority director general David Gilo reached a settlement with the company, under which it will pay a NIS 3 million fine. The two-year investigation focused on suspicions that the company concealed from the Antitrust Authority documents for an examination into the company's monopoly position in the economy.
The settlement eliminates the need for criminal or administrative enforcement measures against Tnuva or its officers. According to procedures, the settlement will be open to public review, after which it will be submitted to the Restrictive Trade Practices Tribunal for approval. The criminal investigation of Tnuva chairwoman Zehavit Cohen has been closed without charges.
The case began in March 2011, when Tnuva was ordered to submit to the Antitrust Authority data and documents about its operations. The Antitrust Authority made a second demand in July, and it opened an open investigation in September into suspicions that Tnuva had not provided all the relevant documents. The Antitrust Authority's investigation included a raid on Tnuva's offices and the seizure of documents which had been demanded but not turned over.
Today, the Antitrust Authority said that since the case took place before an amendment to the law granting the Antitrust Authority the authority to levy financial penalties came into force, and taking into account that this was a case that had it occurred after the amendment came into force, it would have resulted in financial penalties rather than criminal enforcement, the Antitrust Authority opted for a settlement instead of an indictment in a criminal proceding. The Antitrust Authority says that NIS 3 million fine reflects the severity of the actions in Tnuva's specific case and the broader aspects of not providing data required by the Antitrust Authority to carry out its legal function.
Gilo said, "The amount paid by Tnuva is a jump in magnitude in the enforcement of the Antitrust Law. The settlement we reached with Tnuva sends an unequivocal message that everyone must comply with the Antitrust Authority's demands, and that non-compliance with the demand for data in full, even if this was not a matter of malicious intent, carries a heavy price."
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2012
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