A shopping center demanded the enforcement of restrictions on the sale of food on a purchaser of a store in the shopping center pursuant to a limitation that appeared in the purchase agreement. The shop owner claimed that this is an illegal, and thus unenforceable, restrictive arrangement.
The court held that the Israeli Antitrust law includes an exception that allows a restrictive arrangement between a grantor of a right in land and the recipient of such right when such arrangement concerns the type of assets or services that the recipient may deal with on the land. While this exception is usually activated in cases of lease of properties, it will also apply in case of acquisition of land and therefore the Court issued an injunction prohibiting the shop owner from violating the limitations on the use of the shop.