Israeli Regulator Proposes 17 Million Shekel Fine Against Samsung Importer Over Parallel Imports

The Israeli Competition Authority announced it is considering imposing a financial penalty exceeding 17 million shekels on Sunny Communications, the official importer of Samsung products in Israel. The fine relates to alleged anti-competitive actions against parallel imports of Samsung mobile phones originating from the Palestinian Authority territories.

According to the authority, Sunny Communications complained to Samsung Israel representatives at the end of 2023 about parallel imports presenting themselves as authorized dealers, offering warranties and services through official Samsung-approved labs. However, the investigation found Sunny went further, objecting to the parallel imports because they included better models sold at lower prices. Sunny reportedly provided Samsung with detailed information about specific devices imported via the parallel channel and pressured Samsung to resolve the issue by regulating territories or halting sales to the Palestinian Authority altogether.

The Competition Authority stated these actions could harm or even stop parallel imports, violating the 2023 amendment to the Economic Competition Law, which prohibits direct importers from actions that damage parallel import competition. This includes forbidding the transfer of supply chain tracking information to manufacturers if intended to harm competition. Sunny Communications is entitled to present its defense in a hearing before any final decision. The company said it is reviewing the notice with legal counsel and believes it has strong defenses to present.

This case marks the fourth enforcement action by the Competition Authority concerning parallel imports since the law amendment took effect in 2023.