among people who conduct business; this principle extends broadly and includes corporations as well. Its purpose is to distinguish between business entities and entities that are not, such as consumer entities or the state in its governmental role.
Constraint; means limiting the freedom of action given to any of the parties to the arrangement. This element is the most problematic in defining a restrictive arrangement, since commercial arrangements are by their very nature restrictive to some extent. Therefore, this component should be given a reduced weight as it does not contribute to a substantial competitive examination of the concrete arrangement. The examination of the restraint will be done in any case according to the circumstances.
libels (potential for harm to competition); This element is at the heart of section 2(a) of the Law. It was determined that it should be interpreted in a purposeful manner and its strict interpretation should be avoided. There is no obligation to conduct a market analysis in any case to show that this component exists, and each case will be examined on its own merits. The offense does not require actual harm to competition, but it is sufficient that the arrangement has the potential to harm competition.
In addition to the general definition in section 2(a), section 2(b) of the law establishes absolute presumptions for the existence of a restrictive arrangement. An arrangement in which the restraint relates to one of the following matters shall be considered a restrictive arrangement, without the need to prove the element of "libel": (1) the price that will be demanded, offered or paid; (2) the spacing that will be generated; (3) The division of the market, in whole or in part, according to the place of business or according to the persons or type of persons with whom it will be engaged; (4) The quantity, quality or type of assets or services in the business.
These presumptions apply both on the criminal and civil levels. However, the Supreme Court ruled that, as a rule, vertical arrangements between parties in various links in the trade chain will be examined in accordance with section 2(a) and not according to section 2(b), except in particularly exceptional cases.