The Promotion of Competition in the Food Industry Law, 2014 (the “Food Law”) was enacted in order to increase competition in the food and consumer products sector, with the goal of customer price reduction.
The law seeks to promote competition in the food sector through a long line of regulations and individual restrictions on food suppliers and retail chains. Unlike the common competition regulation model, based on an individual examination of the circumstances and parties to each case, the Food Law is based on classifying food suppliers in separate categories, applying a different set of rules and regulations to each entity according to its classification. Under the law, the Competition Authority acts as a regulator of the food sector; among others, the law grants the General Director the authority to approve the opening or force the closure of retail shops, sets restrictions upon contracts with suppliers, and more.
Our firm provides ongoing legal counsel to its retail clients regarding all aspects of the Food Law, including representation vis-à-vis the Competition Authority and other retail and food companies. Among others, our legal teams represent clients in various proceedings held under the Food Law before the Competition Authority, especially with regard to opening branches in areas in which the client is declared as holding a certain market share; advise on the sale and lease of branches; and advise on the submission of merger notices and related requests to the Competition Authority. In this capacity, our attorneys often advise clients regarding innovative matters and precedential decisions by the Competition Authority.
