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The big test of the head of the competition authority: is Ofra Strauss above the law? - Walla! news

2022-12-08T11:52:54.321Z


Only a few days ago, Ofra Strauss, the controlling owner of the food giant, signaled her intention to raise prices. Today Strauss implemented the actual price increase. If the Competition Authority does not summon Strauss for an investigation, as it has done with other senior officials in the economy, this may be interpreted as a "celebration" for Ofra Strauss


Liat Ron on the price increase at Strauss (Liat Ron)

Strauss announced this morning (Thursday) its decision to raise prices on a range of products.

The company stated that the increase in price is due, among other things, to the increase in the prices of raw materials in Israel and the world, including the prices of milk, sugar, oils, cocoa, energy, packaging and Yad Mordechai products, at rates of more than tens of percent in the last two years.



In the background of Strauss' move, senior managers in the economy have been questioned in recent weeks by the Competition Authority on suspicion of price coordination.

As far as is known, at the heart of the investigation are statements by those senior media officials regarding expected price increases, which the Competition Authority saw as an attempt to coordinate prices through the media.



But it seems that these investigations did not deter Ofra Strauss, who controls the food giant.

A few days before the Strauss price increase, the controlling owner publicly hinted that the company was about to raise prices.

In an interview with the news company, Strauss was asked if the company would raise prices, as other companies have done.

At first she replied: "What we see in the world today, inflation that affects everything we do, what we are experiencing now, the entire generation of managers I am part of have not experienced."

That was the first clue.

Will you get a "celeb discount"?

Ofra Strauss (Photo: Flash 90, Avshalom Sassooni)

"It sounds to me that you are preparing the ground for a price increase," said interviewer Karen Marciano.

"I really don't intend to comment on anything related to prices in the Strauss Group," Strauss replied, but after this statement came a second hint, and this time - particularly thick - regarding the company's intentions regarding prices.

Strauss said: "But part, many, of the changes we are making and will continue to make is to ensure that our company continues to be strong, and employable and profitable in the coming years as well."



In connection with the initial statement about inflation (which today, unsurprisingly, is the official excuse for raising prices), and when her answer regarding the changes required at Strauss came in the context of the question about raising prices - it seems that every sane person understood at the time that Strauss intended to raise prices and that these things could be interpreted by the competition authority as a forbidden signal to its competitors of Strauss.

This is what is written on this website in real time.

Strauss denied it, but today, a few days after the controlling owner's signal,

More in Walla!

Despite the denials: Strauss also announces a price increase

To the full article

Raising prices, despite the denials.

Strauss factory (Photo: Flash 90, Michael Giladi)

Michal Cohen, CEO of the Competition Authority, recently addressed the issue of public statements regarding prices. "I want to talk about the public statements in the industry," she said. "This is an important issue that can change companies' decisions and affect competition.

I mean the situation where a player in the food market refers to the future price he thinks the product should be, or if decisions should be made on price increases.

References of this type affect elements in the market.



" "What should not be said in a closed room should not be said above the newspaper.

"Sunlight does not whiten binding arrangements," she said. Cohen is now facing the biggest test so far in her term: will Ofra Strauss be called in for an investigation or will the Competition Authority turn a blind eye and grant a "celebrity concession" despite the clear signal that Strauss chose to signal to her competitors a few days before she made the Aalat The actual price If Cohen chooses to grant Strauss immunity, it seems that the competition authority's deterrence, which is in any case questionable, will finally go down the drain.

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Source: walla

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