Sources in the Economy Ministry announced today (Sunday) the opening of criminal proceedings against the managers of the Coca-Cola Company, who did not comply with Economy Minister Nir Barkat's demand from the beginning of the month to open the company's financial statements. This was at the end of the 21 days allotted to it, which also included an extension time requested by Coca-Cola.
"Anyone who does not provide the data as required is breaking the law in a criminal offense and is subject to a penalty of up to a year in prison," they told Walla! Officials in the Ministry of Economy. "The monopolies and cartels need to understand that the celebration is over on the backs of the Israeli public. Their pressure over the ministry's demand for disclosure of the data shows that they have a lot to hide from the public. Minister Barkat's directive is an all-out war against monopolies, with all the tools at our disposal," they added.
Criminal proceedings will be opened against the directors of the company. Coca-Cola bottles (Photo: Flash 90, Nati Shohat)
In response to the minister's request, a lawyer for the Manufacturers Association sent a letter last Friday claiming that the demand to open economic reports is illegal. "The request, which includes an exceptional and extreme demand, was made without legal authority and in violation of the Supervision Law," it said. It added that there was no minimal factual basis to justify the request.
"The monopolies need to understand that the celebration is over on the backs of the Israeli public." Barkat (Photo: official website, Shauli Landner)
The initial request to the company was made at the beginning of the month, against the background of Coca-Cola and the Central Beverage Company's intention to raise the prices of the popular drink ahead of the Passover holiday. At that time, the Ministry of Economy sent a letter to the Central Beverage Company, announcing its intention to put the company's products under supervision.
The ministry also claimed that the central company hid vital data from them, which they are now demanding to receive. Among them, among other things, gaps of hundreds of percent between the prices of products in Israel compared to other countries around the world. For example, the price of a can of Coke is 224% higher in Israel than in various states in the United States, and 160% higher than in Japan (where it costs NIS 1.7).
"In a comparative examination of global markets, there are indications that cola products in Israel are among the most expensive in the world. Recently, close to the cancellation of the tax on sugary drinks, your company announced its intention to raise the prices of your products substantially, in a way that may affect the beverage sector in Israel as a whole," wrote Dr. Yonatan Bezalel, head of the Budget Division and price supervisor at the Ministry of Economy to Coca-Cola, "Your company is a monopolist in the cola drinks market (regular and dietetic), in accordance with the declaration of the Competition Commissioner of May 10, 5, and holds a monopoly in the aforementioned cola drinks market."
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