Member Article

The Restrictive Trade Practices Law, 5748-1988 (the Law) is the 
primary law dealing with antitrust issues in Israel and its objective is 
to prevent harm to competition or the public. The Law contains the 
substantive rules that apply to the various restrictive trade practices 
(restrictive arrangements; mergers; monopolies; concerted groups).

In addition, the Law encompasses rules concerning the structure 
and the powers of the Israeli Antitrust Authority (the IAA), the 
director general of the IAA (the director general) and the Antitrust 
Tribunal (the Tribunal), as well as procedural rules that apply to 
cases brought before each of them.

Recent years have been characterised by a trend for strengthening 
the position of the IAA; increasing administrative enforcement 
as well as the focus of the IAA on its advisory capacity within the 
government; and increasing civil ‘follow-on’ class actions against 
international cartels.

Restrictive arrangements control regime
Definition 
Section 2(a) of the Law defines a restrictive arrangement as an 
arrangement, between persons (including legal entities) conducting 
business, according to which at least one of the parties restricts itself 
in such manner that might prevent or reduce competition between 
the person and the other parties to the arrangement, or any of them, 
or between the person and a third party. Section 2(b) of the Law
also provides conclusive presumptions that an arrangement involving
a restraint will be deemed to be a restrictive arrangement if it
relates to:

• the price to be demanded offered or paid;
• the profit to be obtained;
• market allocation; and
• the quantity, quality or type of assets or services in the business.

With regard to the extraterritorial application of the restrictive
arrangement control regime – the IAA applies the ‘effects doctrine’
in order to acquire extraterritorial jurisdiction over restrictive
arrangements, including cartels executed outside of Israel which
harm competition in Israel.

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