Israel's Competition Authority Imposes Monopoly Regulations on Carmel Wineries

Israel's Competition Authority announced a public consultation on a consent order signed with Carmel Wineries, a cooperative of grape growers from Rishon LeZion and Zichron Yaakov. The order expands regulatory enforcement over Carmel in the markets for grape juice and kosher wine, subjecting the company to monopoly-related restrictions typically applied to dominant suppliers. This follows a June 9, 2026, notice from the Competition Commissioner considering declaring Carmel a monopolist in these markets, pending a hearing. The move stems from the Commissioner's opposition to a merger between Carmel and Arza Winery, which revealed Carmel controls over half of the supply in these sectors and holds significant market power. The Competition Tribunal upheld these findings.

Under the agreement, until the Supreme Court rules on the merger appeal, Carmel will comply with monopoly provisions of the Economic Competition Law of 1988. The order emphasizes these rules apply as long as Carmel maintains monopoly status, even without formal agreement. Carmel will also be classified as a "large supplier" under the 2014 Food and Pharma Competition Promotion Law, subjecting it to obligations such as prohibitions on shelf placement interference, tying product sales, and price manipulation in retail chains. Additional restrictions from food law will also apply.

If the Supreme Court upholds the Competition Tribunal's conclusions or does not materially alter them, Carmel agrees to waive its rights to hearings or appeals against the monopoly declaration and accept the ruling. The full text of the consent order is now published on the Competition Authority's website for a 30-day public comment period.