Amendment to Israeli Antitrust Law – Cancellation of the Blanket Exemption for Reciprocal Distribution Agreements

The Israeli Restrictive Trade Practices Act, 1988, is designed to prevent businesses from placing “obstacles” on the normal course of competition in the market and, inter alia, prohibits the existence of a cartel (or, "restrictive agreement").   Until recently the law included a blanket exemption for reciprocal exclusive distribution agreement. A recent amendment stipulates that as of the end of August, 2015, this exemption will be canceled and exclusive distribution agreements will be subject to the general provisions of the Israeli Antitrust Law. The Israeli legislator granted the market an adjustment period in order to ensure compliance with the new legal requirements and the drafting of new agreements where necessary