The Ministry of Transport refused to renew the direct import licenses of a motorcycle importer for both Yamaha and Kawasaki brands, ruling that the license could only be renewed for one of them.
The Supreme Court dismissed the importer's appeal on competition grounds. The Israeli Law for the Licensing of Services and Professions in the Automotive Industry requires a direct importer to obtain and renew a direct import license every six years. In addition to the statutory considerations, regarding a direct import license, the regulator must consult with the Competition Commissioner and consider competition-related factors and has the authority to prevent renewal for such reasons. Here, the importer deals in road motorcycles manufactured by Yamaha and Kawasaki, which were found to be substitutable products; the Commissioner determined that their importation by different importers would increase competition in relevant market. Hence, the regulator was authorized to deny the renewal of the direct import license.