Caselaw

Derivative Claim (Tel Aviv) 59581-06-18 Dror Cohen v. Bezeq Israel Communications Company Ltd. - part 10

January 19, 2020
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Additional documents referred to by the Applicant

  1. The Applicant referred to additional documents whose cumulative weight strengthens the said conclusion.

Thus, a letter sent by the Director General of the Ministry of Communications to Bezeq before the reform came into effect, indicates that the Ministry of Communications was of the opinion that the response it received from Bezeq in connection with its preparations for the reform was "partial and insufficient" and created a situation of "lack of clarity" (see Appendix 16 to the request).

The Ministry of Communications' announcement dated May 11, 2015 (the announcement of the intention to impose a financial sanction on Bezeq) noted that it was found that Bezeq was not properly complying with the instructions set out in the service file, and that it was therefore decided to impose a financial sanction on it.  This document also emphasizes that Bezeq's conduct and violation of the provisions that apply to it in accordance with the service portfolio harms the ability of subscribers to transfer from it to competing service providers, and the ability of competitors to recruit new subscribers.  The violations, according to what is stated in this notice, began on the date the service file came into effect.  The document emphasizes that "every day that passes in which the company continues to violate the provisions of the service portfolio increases the risk of the failure of the reform."

The Ministry of Communications further noted in the announcement that:

"The company's conduct, as detailed in the supervision report in paragraph (c), amounts to an anti-competitive practice, and it seems that its entire purpose is to prevent competition to maintain the market share in the company's possession, and the high volume of revenues deriving from it.  The company's conduct has the potential to harm and even thwart a significant and important reform in the communications market in Israel" (my emphases – R.R.).

  1. These statements therefore clearly attest to the position of the Ministry of Communications with regard to the purpose that underpinned Bezeq's alleged conduct, conduct that was intended, in his view, to thwart the reform. In its demand for payment of the financial sanction of December 16, 2015, the Ministry of Communications referred to the fact that Bezeq continues to adhere to the claim that it is acting without authority.  The Ministry of Communications clarified that "Even if the company has reservations about certain aspects of the process duly determined by the Ministry, She cannot make a judgment for herself and choose not to uphold them" (My emphases – R.R.).  From these words as well, it can be concluded that the Ministry was of the opinion that Bezeq was consciously violating its instructions and was taking the law into its own hands.
  2. In addition, it was noted in the demand for payment of the financial sanction that "The entire nature of the violations committed by the company as detailed in the Supervision Report [...] It is to prevent and delay the development of competition and to thwart the success of the reform and the policy of the Ministry of Communications". The Ministry of Communications also addressed the actions taken by Bezeq upon discovering the violation, including stopping the violation on its own initiative and taking steps to prevent its recurrence and reduce the damage caused as a result.

In this context, it was held that :

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