Yamaha ATV.
The commissioner claims that Metro signed an agreement to sell the inventory to its agents, but did not implement it/Yamaha
Competition Commissioner Michal Cohen informed Metro Motor, importer of Sun Young, Yamaha and Kawasaki, along with Via and Lipomotor cars, of her intention to fine the company an unusual amount of 20.8 million shekels, and another 600 thousand shekels for two of its executives.
The announcement comes days after Economy Minister Nir Barkat announced his intention to oust Cohen, in light of his dissatisfaction with her performance in the face of rising food prices.
This is an issue that has already been reviewed and agreed upon between the commissioner and Metro, regarding the import and marketing of Japanese Yamaha ATVs and operational vehicles.
Three years ago, the commissioner determined that the agreement between Metro and Yamaha is a binding arrangement, because it gives it too much power in the market, after it already held significant market shares in the field thanks to the import and marketing of such vehicles from other manufacturers.
Metro Motor then decided to terminate the contract with other manufacturers of ATVs and vehicles, Arctic Cat and Easy Go, and the commissioner approved the import of Yamaha vehicles.
However, this is on the condition that Metro does not start selling them until the full inventory of Arctic Cat ATVs is sold.
Michal Cohen, in charge of the competition/image processing, Haim Goldberg/Flash 90
According to her, Metro violated this condition, because it signed agreements for the sale of the stock to its agents, while in practice the stock of ATVs was not transferred to the agents, and Metro continued to sell them at the same time as the sale of Yamaha ATVs, in a way that could significantly harm competition.
Metro reacted sharply to the message.
The company stated that "the competition commissioner's notice is baseless, riddled with errors and distortions, and constitutes an injury to a company that generates competition. The company has good arguments regarding everything stated in the commissioner's notice and will bring them before the competent courts. The company is confident that it will find that there is no fault in its conduct and the conduct of its officers.
" This is an unprecedented decision both in terms of the reasons for the decision and in terms of its results in relation to the matter in question, and it is intended to cover the Authority's failures in handling the cost of living in Israel.
"We are sorry that the pressures exerted on the competition commissioner motivate it to deal with a company that creates competition, instead of companies that block it."
More on the same topic:
Yamaha
Metro Motor
The Antitrust Commissioner