Israeli Competition Authority Considers 17 Million Shekel Fine Against Samsung Importer Sunny

The Israeli Competition Authority announced on Monday that it is considering imposing a fine exceeding 17 million shekels on Sunny Communications, the official importer of Samsung mobile devices in Israel. The potential penalty relates to alleged violations of the Economic Competition Law, which prohibits official importers from harming parallel imports. Sunny, which imports Samsung phones, accessories, and spare parts, reportedly complained in late 2023 to Samsung's Israeli representatives about parallel imports of Samsung phones from the Palestinian Authority territories. The parallel importer presented itself as an authorized Samsung importer, offering warranty and service through official repair centers approved by Samsung.

Sunny accused the parallel importer of misleading consumers by posing as an official importer and further claimed that the parallel-imported devices were better models sold at lower prices. Sunny provided Samsung with specific information about these devices and demanded that Samsung "resolve the issue," regulate territorial distribution due to the parallel imports, and even cease sales to the Palestinian Authority altogether. Competition Commissioner Michal Cohen stated that Sunny's actions could harm or even halt parallel imports.

Following these findings, the Competition Authority informed Sunny of the possible fine but granted the company the right to present its arguments before a final decision is made. Over the past two years, the authority has intensified enforcement in the parallel import sector. Since a September 2023 amendment to the Economic Competition Law, official importers are prohibited from actions that could harm parallel or personal imports, including sharing supply chain information with foreign manufacturers to block parallel imports or requesting suppliers to stop parallel imports. Additionally, a July 2023 amendment forbids foreign suppliers and manufacturers from agreeing to restrict sales to Israel to prevent parallel imports and protect competition.