Sources inform “Globes” that Tadiran Telecommunications (which merged with ECI in 1999) and Telrad Networks are likely to pay NIS 12 million in the switchboard cartel affair, under a plea bargain involving the companies, other suspects in the affair, and the Antitrust Authority.
The plea bargain will replace a criminal indictment. The affair, revealed by "Globes", has been under an Antitrust Athority investigation for several years. Indictments were considered against the companies, as well as Bezeq (TASE:BZEQ) and its former CEO Yitzhak Kaul.
The initial negotiations, now close to a settlement, include the amount to be paid by Tadiran Telecommunications and Telrad, but it is not yet clear if Bezeq is included in the settlement.
Tadiran Telecommunications and Telrad were suspected for several years of fixting market share and prices for public switchboards with the only customer for them - Bezeq. The suspicions covered acts carried out in 1993. The Antitrust Authority did not draw up a draft indictment in the affair.
On the advice of counsel, Bezeq refuses to pay any money under a plea bargain. Bezeq claims it is an innocent party in the affair, and therefore has no reason to participate in any payment. It is thought that Bezeq will ultimately have to pay something. Bezeq's attorney declined to confirm or deny the supposition.
Published by Globes [online] - www.globes.co.il - on February 25, 2004