Michal Cohen, the head of the Israel Competition Authority, announced the declaration of Wissotzky Tea as a monopoly. The antitrust regulator has been scrutinizing Wissotzky for several years, and the examination leading to this announcement commenced around 18 months ago. The declaration of Wissotzky as a monopoly follows a hearing conducted over the past few months, specifically focusing on the green tea and herbal tea markets.
The Competition Authority determined that Wissotzky holds a market share of over 70% in the sales of green tea and herbal tea to retailers in Israel. Furthermore, the regulator concluded that Wissotzky’s substantial market power enables the company to charge higher prices compared to competing suppliers in the green and herbal tea sector. This dominance has allowed Wissotzky to maintain its position for an extended period. Even when rival brands entered the Israeli market, successfully established abroad, Wissotzky’s competitors encountered difficulties in increasing their sales, despite offering lower prices than Wissotzky.
As a result of this announcement, Wissotzky will be classified as a “large supplier” and will now be subject to all the restrictions imposed on such entities. These restrictions include prohibitions on interfering with the arrangement of shelves in marketing chains, conditioning the sale of one product on the purchase of another, and general restrictions on intervening in the final customer’s product price within the chains, among other limitations outlined in the Food Law.
Prior to the hearing, the Israel Competition Authority also considered declaring Wissotzky a monopoly in the black tea and flavored black tea markets. However, the data collected during the hearing strengthened the conclusion that Wissotzky’s market share in black tea is less than 50% and is on the verge of erosion. Additionally, another significant market player in this sector was identified, leading to the exclusion of black tea from the monopoly declaration.
Currently, there are 61 companies recognized as monopolies in Israel, with the majority of them designated during the 1980s and 1990s. Over the past decade, only three companies outside the food sector have been declared monopolies: Ashdod Mort, Delek Drilling (NewMed Energy), and Environmental Quality Services. With this recent announcement, Wissotzky joins the list, which already includes Central Bottling Co. (Coca Cola), Strauss (milk delicacies), Elite (chocolate bars, instant coffee, and cocoa powder), Tnuva (milk and dairy products), Osem (pasta), Tivol, and Israeli Food Products Ltd. (margarine and mayonnaise). All of these companies were declared monopolies in 1988 and 1989.
Minister of Economy and Industry Nir Barkat expressed his satisfaction, stating, “I am pleased to see that the Competition Authority has awakened from a prolonged slumber and, after 20 years, has declared a monopoly in Israel. The Competition Authority’s responsibility is to safeguard the public from monopolies and utilize all legal tools to promote competition. As the Minister of Economy, my policy is to combat monopolies and those who exploit the public. I expect the Competition Authority, under the Ministry of Economy, to take resolute action against anyone impeding competition, engaging in monopolistic practices, and oppressing the public. I anticipate further steps in this direction.”
{Matzav.com Israel}
Monopoly Declared a Legitimate Board Game By the Israeli Competition Authority
Michal Cohen, the head of the Israel Competition Authority, announced on Sunday the declaration of Monopoly as a legal and legitimate board game.
Critics of the game filed a petition with the Competition Authority claiming that the ‘Go to Jail’ feature in the game – which lands a player in jail when his/her piece lands on the “Go to Jail” space, or when he/she draws a card marked “Go to Jail”, or when a player rolls doubles with the dice three times in a row – is “totally ridiculous, random and unfair!”.
Critics also asserted that “the fact that Monopoly players can become successful real estate millionaires with just a few rolls of the dice was absurd and totally unrealistic.”
“Based on all of the above,” the petition stated, “we believe Monopoly should lose its status as a legitimate and genuine board game, and should be declared a total farce and complete hoax.”
However, Michal Cohen, the head of the Israel Competition Authority, adamantly rejected the petition’s claims.
“I’m sorry,” Mr. Cohen wrote in his ruling to allow Monopoly to retain its status as a legitimate board game, “but ultimately Monopoly is just a game, and should be treated like an ordinary game, and not a real-life business venture. So please, let’s not get carried away with these ridiculous complaints. Okay?”
More proof of the reason they need traditional reform etc in EY.
So it’s the company’s fault that they’ve become so good and therefore they have a large retail presence. It’s not their fault that other companies can’t make it. There wasn’t even a mention of that.
It’s such a backwards country when it comes to certain things it’s unbelievable.