Israel’s Major Food Price-Fixing Trial Opens in Lod

The first hearing in what is being described as one of Israel’s biggest food-sector competition cases opened Tuesday morning at the Central District Court in Lod. The state has charged senior executives from major supermarket chains with attempts to coordinate prices, reduce competition, and pressure suppliers and rivals. If convicted, some of the defendants could face prison terms of up to five years.

According to the amended indictment, the allegations are based on violations of the Economic Competition Law and the Food Law. Since the Food Law took effect, supermarket chains have been barred from coordinating prices with one another or with suppliers, and each chain is required to make independent business decisions.

The prosecution says that beginning in September 2021, Victory owner Eyal Ravid made public comments about an expected 8% to 12% rise in food prices, and that the remarks were meant to reach suppliers and competing retailers. The state argues the messages signaled that Victory would not resist price hikes, would avoid major discount campaigns, and would approve new supplier price lists, encouraging market-wide increases. It also alleges cartel-like agreements between some chains, including Victory and Yochananoff, to cut promotions and avoid moves aimed at taking market share.

The indictment further claims that around the 2021 tax on disposable tableware, industry figures coordinated so the full cost would be passed on to consumers. It also accuses chain managers of pressuring major suppliers to affect prices charged to rivals, including Rami Levy. In one case involving Dr. Fischer products, the supplier was allegedly pushed to approve increases only if competitors also raised prices. In another involving Shestowitz, managers allegedly demanded intervention in Rami Levy’s pricing and threatened to remove products from shelves if prices were not raised.

A separate allegation concerns the Beit Hashita case, where the state says supply was halted and pressure was applied to force rival chains to stop selling products at promotion prices or at prices viewed as too low. Eitan Yochananoff is also accused of failing in his supervisory duty as an active manager at Yochananoff, by not taking the necessary steps to prevent the alleged offenses. The court will now hear the case, while all defendants remain presumed innocent unless convicted.