Israel's Competition Authority Fines Central Bottling Company Again

Israel's Competition Authority intends to impose an additional fine of over NIS 1.5 million on the Central Bottling Company for violations of the Food Law. These violations relate to recommendations made to food chains regarding consumer prices for the company's soft drink products.

This new penalty follows an earlier fine of approximately NIS 18 million levied against the company earlier this year, which has already been paid. The previous penalty stemmed from an investigation into the company's alleged interference in setting shelf prices for its "Tara" brand products and product placement within retail networks.

The Competition Authority stated that while its investigation did not find evidence that the company violated specific monopoly regulations from 1998, it did uncover breaches of the Food Law concerning price recommendations for soft drinks. The parties have reached an agreement on the additional fine, which is now open for public comment for 30 days.

This action is part of a broader review by the Competition Authority into the relationships between major food suppliers and large retailers. The authority has reached agreements totaling over NIS 150 million in fines with numerous large suppliers as part of this review. The authority is also currently examining the conduct of major retailers regarding their compliance with the Food Law.

The Central Bottling Company declined to comment on the matter. The article also briefly mentions a separate report about the company potentially laying off 30% of its Gat Foods factory employees.