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Soft law > Concerted Practices

Enforcement Against Unfair Prices When There Is No Competitive Solution

Israeli Antitrust Authority, Public Statement, September 2016

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The Antitrust Authority published a public statement draft for public
comment, regarding its considerations on the enforcement against excessive unfair prices. The document suggests that the Authority would act in cases where no other competitive solution is available for addressing the underlying problem in the specific market. The Authority decided to repeal the "safe harbor" provided by the previous public statement, according to which as long as the difference between the product’s price and the cost of its production is less than 20%, no enforcement action is to be taken against the monopoly holder. The decision to repeal the safe harbor was made following many difficulties arising due to its mere existence, and especially owing to the incorrect public perception that a monopoly’s profit above 20% is considered wrong and illegal.