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

The Israeli Competition Authority has announced it is considering imposing a financial sanction exceeding 17 million shekels on Sunny Communications, the official importer of Samsung products in Israel. The move follows suspicions that Sunny violated competition laws by harming parallel imports through unfair practices.

According to the authority, Sunny complained to Samsung about parallel imports of mobile phones originating from the Palestinian Authority territories. These parallel imports were reportedly marketed as authorized Samsung products, offering official warranty and service through Samsung-approved labs. Sunny alleged that the parallel importer sold better models at lower prices than those Sunny offered, and requested Samsung to "resolve the issue" by delineating territorial sales rights and ceasing sales to the Palestinian Authority.

Sunny acts as the direct importer of Samsung mobile phones, accessories, and spare parts in Israel. The Competition Authority claims Sunny’s actions could have severely damaged or even halted parallel imports, which are legally permitted. Sunny has the right to present its arguments before the Competition Commissioner.

This case is part of a broader enforcement effort by the Competition Authority following a legal amendment effective September 2023. The amendment prohibits direct importers from actions that harm parallel or personal imports, including sharing supply chain information with manufacturers to undermine competition. Sunny’s case is the fourth enforcement action since the amendment, with the authority having contacted 13 major direct importers across various sectors as part of its initiative.