Coca-Cola Israel Fined Again for Price Intervention

The Central Bottling Company, known as Coca-Cola Israel, will pay an additional fine of 1.56 million shekels for interfering with consumer prices, according to the Israel Competition Authority. This penalty comes just months after the company paid an 18 million shekel fine for violating the "Food Law." The Competition Authority stated that between 2021 and 2022, the company recommended prices to major retailers or otherwise intervened in the consumer prices of its beverages.

This latest penalty is expected to be imposed following an agreement reached in February, where the company paid 18 million shekels for violations including interference with display space, price recommendations for its subsidiary Tara's dairy products, and improper payments to retailers. The Competition Authority had initially set aside the current price intervention violations to investigate if they also breached monopoly regulations imposed on the company in 1998. However, finding no evidence of monopoly violations, the authority proceeded with the Food Law violations.

The investigation into Coca-Cola Israel's practices is part of a broader review initiated in early 2022 by the Competition Authority into agreements between major food suppliers and large retailers. This review examines the commercial relationships and compliance with the Food Law. As part of this enforcement process, the authority has reached agreements with all major suppliers investigated, totaling over 150 million shekels in fines. The Competition Authority is currently also examining the conduct of major retailers.