Israeli Competition Authority Intensifies Enforcement Against Parallel Import Blocking with Multi-Million Shekel Fines
In recent months, the Israeli Competition Authority has significantly stepped up enforcement against practices that hinder parallel imports, imposing fines totaling tens of millions of shekels. Among the penalties, Carso Motors was fined 11.5 million shekels, and Sunny Communications faces a potential fine of about 17 million shekels, with additional ongoing investigations targeting importers across various sectors. The state appears to be sending a clear message to official importers that actions once considered routine in dealings with foreign manufacturers, such as sharing information about parallel imports or tightening service conditions, may now be deemed violations subject to heavy sanctions.
Parallel import involves bringing original products from a manufacturer into Israel through channels other than the official importer, creating direct competition with the official supply chain. The Competition Authority’s recent legislative amendment, effective September 2023, introduced a dedicated chapter addressing parallel and personal imports, broadening the scope of prohibited actions. These include sharing supply chain information with manufacturers, altering commercial terms to hinder parallel purchases, interfering with product presentation by retailers, refusing to supply goods, and directly pressuring manufacturers to stop supplying parallel importers.
Recent enforcement examples include a 15 million shekel fine against Ofer Avnir, a two-wheeler importer, for photographing parallel-imported motorcycles and sending the images to the manufacturer. Roltime, a watch and luggage importer, faces an 11.5 million shekel fine for sharing information about parallel-imported Samsonite luggage and using undercover customers to photograph competitors’ products. Moshe Seeds and Son agreed to pay over half a million shekels after contacting a foreign manufacturer to block a parallel importer. In July 2023, Carso Motors was fined 11.5 million shekels for imposing service restrictions on vehicles imported in parallel, and Sunny Communications is under consideration for a 17 million shekel fine for allegedly pressuring Samsung to halt device supplies to the Palestinian Authority to prevent parallel imports.
The Competition Authority emphasizes that it initiates investigations proactively, not only responding to complaints, and that the new legal framework allows it to act even without proving significant market-wide competitive harm. Legal experts note the shift from assessing overall competitive damage to enforcing broad prohibitions with severe penalties, up to 8% of turnover or 111 million shekels. The complex relationship between official importers and manufacturers, often involving joint market development efforts, adds to the enforcement challenges. Industry sources report difficulties for consumers seeking service for parallel-imported products, as official importers sometimes deny warranty or software support.
While the intensified enforcement aims to protect competition and lower consumer prices, its actual impact remains unclear. A 2025 State Comptroller report recommended that the Competition Authority and government measure the effects of import reforms on market competition and pricing, indicating that the state itself lacks comprehensive data on outcomes so far.
