Legal Updates

Coordination between competing companies of tender offers in also a crime of the managers

July 14, 2016
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Representatives of two competing companies met prior to submitting offers for a national tender in two different areas and after the opening of the offers box it was discovered that each company submitted a cheap offer for one area and an expensive offer for the other so that each won in another area.

The Court held that the purpose of the meeting was to coordinate the positions of the two companies in the tender and distribute the dented so that each will win in another area, and so it has been done. This was a restrictive arrangement aimed at price fixing and market division of the competing suppliers, and which results in responsibility not only for the company but also its managers. The Court ordered that each of the companies involved will pay an ILS 250,000 fine and each of the managers will serve a sentence of community service, probation and fines of ILS 100,000 to ILS 150,000. It was also decided that the managers will be prohibited from serving in board of directors of public companies for three years.