The Cold War is taking a step: Will Unilever in Israel get into trouble because of the ice cream boycott?

Last week, the Competition Authority raided Unilever's offices, but this is not the only problem threatening the Israeli branch of the food giant: the 2011 boycott law allows sanctions to be taken against those who boycott not only the State of Israel but also "an area under its control."

And how does the crisis also relate to the competition authority?

Walla!

Of money

13/02/2022

Sunday, 13 February 2022, 10:36 Updated: 11:22

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This was not Unilever's month - in the world and in Israel as well.

About a month ago, it became known that the company's share had lost a huge share of its value, partly due to the boycott declared by the global "Ben & Jerry's", which it controls, over Israeli localities that are beyond the Green Line.

In the local arena as well, investigators from the Competition Authority raided the company's offices, on suspicion of price coordination, interrogated a number of executives and confiscated accounts and documents.

The connection between the global and local arena, resurfaced last weekend: On Thursday, during a conversation with journalists,

said that "Ben & Jerry's board of directors aims to formulate a new arrangement for sales in Israel before the end of the year.

Our focus at the moment is to understand what the new arrangement will be for Ben & Jerrys. "

, Who refused the directive to restrict ice cream sales, under the brand, to the Green Line only refusal following which Unileveri decided the contract with him would not be renewed at the end of 2022, responds to Unilever CEO's statement: "Unilever CEO's scandalous statement breaks records Israeli law explicitly states that it is not legally possible to continue selling in Israel without selling in Judea and Samaria.

Any new arrangement that does not include sale in Judea and Samaria also violates Israeli law. .

In the coming weeks, the Knesset's Constitution Committee will approve the boycott law regulations approved last week by the finance and justice ministers, which will allow immediate sanctions against the company following what Unilever's CEO said.

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It is unbelievable what happened to him in just 10 weeks

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Alan Joop, CEO of Unilever Global. What initially seemed like a small blow to the global food giant's wing, is becoming a real problem for him. Is the Israeli regulator likely to intervene? (Photo: Reuters)

Not only the boycott law, but also the Competition Authority

According to the language of the boycott law enacted in 2011 and allows for economic sanctions against companies that boycott Israel: "Boycott of the State of Israel" - deliberately avoiding economic, cultural or academic contact with a person or another factor, only because of its connection to the State of Israel, an

"

's allegations against Unilever do not only focus on the 'boycott law' promised by the finance and justice ministers, but also on the Competition Authority. According to Singer, in the coming days The competition to publish its decision on the issue it calls "a breach of Unilever's agreement with the antitrust commissioner in Israel."

Explanation: In 2001, when Unilever acquired the global Ben & Jerrys, Unilever in Israel needed the approval of the Antitrust Commissioner (now known as the Competition Authority).

The reason: Unilever, which as a result of the acquisition owns two subsidiaries in Israel: Strauss Ice Cream and Ben & Jerry's, could harm competition.

The condition of

, the commissioner at the time, for approving the transaction: Unilever must not restrict in any way the market shares of any of the companies it owns.

Avi Singer, owner and CEO of Ben & Jerry's in Israel, who will lose the brand franchise at the end of the year. He fought both through the boycott law and through the competition authority (Photo: Matan Portnoy)

In Singer's opinion, when declaring the boycott of Judea and Samaria, Unilever violates the agreement with the competition authority, since making the brand imported only and not one produced in Israel will harm competition.

According to Singer, "Unilever Global, which is currently trying to minimize damage and declares that it will continue to market the ice cream in Israel without the Israeli franchisee, is in complete violation of the law and any arrangement that does not include a sale in Judea and Samaria means overriding Israeli law."

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