Legal Updates

Postponement of Enforcement of Cancellation of the Blanket Exemption for Reciprocal Distribution Agreements

August 6, 2015
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As mentioned in the previous issue of the newsletter of Afik & Co., a recent legislative amendment stipulates that as of the 25th of August, 2015, exclusive distribution agreements in which the distributor buys goods or services only from a specific supplier, and the supplier sells the goods or services only to the specific distributor, will be subject to the general provisions of the Israeli Antitrust Law. However, a recent decision of the Director General of the Antitrust Authority dated August 6, 2015, until February 25, 2016, there will be no enforcement against exclusivity arrangements where one of the parties to the agreement had informed the Antitrust Authority about the existence of the above arrangement. Therefore, in order to avoid enforcement against such kind of agreements which include exclusive distribution part, we recommend to contact a lawyer who is familiar with Antitrust matters in order to approach the Antitrust Authority on your behalf