Coca-Cola Israel Faces NIS 1.56 Million Fine for Price Fixing

The Central Bottling Company, which produces and distributes Coca-Cola in Israel, is facing a proposed fine of approximately NIS 1.56 million. The Israel Competition Authority (ICA) published the draft settlement for public comment on Monday, September 14. The authority alleges the company violated competition laws by recommending retail prices for its soft drinks to supermarket chains.

This new penalty is separate from a previous NIS 17.7 million fine the company paid recently. The current allegations were initially set aside during the previous settlement process to investigate potential violations of specific regulations imposed on the company after it was declared a monopolist in 1998. As no violations of those specific regulations were found, the ICA pursued a separate settlement for the food law infringements.

The maximum penalty for such violations could have reached over NIS 25.9 million. However, the base fine was set at 10% of this amount, as the case was handled under food law rather than competition law. Further reductions were applied due to the company's lack of prior food law violations, its cooperation in negotiations, and its agreement to waive its right to object, saving state and judicial resources.

The settlement does not constitute an admission of guilt by the company, its current or former executives, employees, or shareholders. Previously, the company paid NIS 17.7 million for other offenses, including interfering with product placement in stores, influencing retail prices of its dairy products (Tara), and making non-discount payments to retailers. The company also denied those allegations.

According to the ICA, between 2021 and 2022, the company allegedly recommended product placement to major retailers, which is prohibited for large suppliers. It also allegedly recommended or interfered with the retail pricing of its Tara dairy products, also a violation. Additionally, the company made payments to retailers that were not legitimate discounts, further contravening the law. These combined violations could have theoretically resulted in fines exceeding NIS 77.8 million, but were significantly reduced.

The ICA decided not to pursue action against company executives. In March 2026, the company was fined approximately NIS 29.7 million, and the Supreme Court upheld findings that it had abused its monopoly position, though some charges related to parallel imports were dismissed. The Central Bottling Company is a major food producer in Israel, holding over 90% of the market share for Coca-Cola products and also distributing brands like Neviot and Carlsberg, owning Tara dairy, and controlling Ristretto. In 2021, its annual turnover was around NIS 8 billion.