Competition Authority is reviewing the conduct of networks that have been consolidated due to the Corona crisis

Posted on Apr 26, 2020 by Ifi Reporter - Dan Bielski

Following the disabling of fashion and commerce networks, the Competition Authority is reviewing the conduct of networks that have been consolidated due to the Corona crisis and have announced their cancellation. The authority contacted retailers this morning to fight retailers including Fox, Castro, Golf, Optica Halperin, Brill, Book Junction, Coffee Shop, Consumer, Factor 54, and Falafel Square, asking them to verify that the chains are operating in compliance.
The Authority's investigation began following weekend publications that fashion and trade networks are disrupting operations and threatening to lay off workers if the government does not help them compensate for the financial losses, while the stores were shut down by state regulation.
Adv. Matan Meridor, a partner at Agmon & Co., who represents the local chain's operations team said in response: "The Competition Authority has approached the retail chain's operations team to request data for details later in today's publications. The staff working under close legal advice will respond to the request. It is worth noting that a few days ago, the Competition Authority allowed the chains' action committee to take protest action against the government, in order to regulate the issue of network assistance following the Corona crisis.
"The Supervisor made it clear to the Committee, exceptionally, that at this time, such organizing and actions could benefit from protection under the law, provided that the committee ensures that the downtime and other protest actions are carried out in accordance with the rules of the Economic Competition Law."


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