temporary injunction prohibits Exphon from negotiating cellular network sharing other than Cellcom

The Tel Aviv District Court has issued a temporary injunction prohibiting Exhpon from continuing negotiations to formulate a cellular network sharing agreement with a company other than Cellcom. The order was issued after the failure of the mediation procedure between Cellcom and Expon, following a breach of contract between the two.
The court today (Sunday) accepted Cellcom's position in the lawsuit it filed against Expon, which violated the network sharing agreement that exists between the two companies, and the restraining order is valid until a decision is made in the lawsuit. The continuation of the hearing in the lawsuit is scheduled for about three months, on July 15.
"At this preliminary stage of the proceedings, and with the full caution required, I believe that the chances of a lawsuit are to some extent in favor of Cellcom," Judge Hannah Flainer wrote in a decision she submitted to the court.
Two months ago, Expon announced the cancellation of the companies' cellular network sharing agreement, after Cellcom acquired Golan Telecom, which was the third party in the agreement. Expon claims that the move in which Cellcom acquired Golan Telecom in August 2020 was made without its knowledge, and that after their merger it was forced to be part of a new and non-economic agreement for it, which incurs additional costs.
Flainer details in the decision that it accepts Cellcom's position, according to which the acquisition of Golan Telecom does not violate a contract between the two companies, and that no economic damage will be caused to Expon. Cellcom claims that Expon is trying to improve the terms of its contract or try to obtain a new and improved contract. Flainer also accepts Cellcom's position that the very merger between it and Golan Telecom is not a breach of contract - as Expon claims. Flainer also adds that Expon knew about the upcoming merger and that this is not a surprising move - meaning the company was supposed to be prepared for this change.
Expon has stopped paying its share of the agreement with Cellcom - and so far a debt of about NIS 34 million has accumulated. In addition to the restraining order, Cellcom demands that a foreclosure order be imposed on Expon's assets until it transfers its full debt.
"The chances of a lawsuit tend towards Cellcom, as does the balance of convenience; Cellcom did not delay in filing its lawsuit and acted immediately upon giving notice of cancellation; the lawsuit was filed before there was an existing situation change and no other factor entered the equation; "Cellcom's statement, Expon will be required to continue to respect the same commercial terms as before, until a decision is made in the main lawsuit," Flainer wrote in the decision and also ruled that Expon will pay Cellcom expenses in the amount of NIS 10,000.