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Israel: Coffee chains issue wakeup call to possibility of collusion

By  |  October 10, 2013

While the heads of various coffee chains in Israel have admitted to maintaining relationships with each other – relationships that include discussions on prices – reports say the remarks raise red flags that their relationship could be considered illegal collusion to fix coffee prices.

One coffee chain owner, Ronen Nimni of Café Café, told reporters that all of the coffee chains “are online, on the phone…and we’re in touch with everyone.”

While the remarks have raised concerns of illegal collusion, all major coffee chains denied wrongdoing.

According to reports, the remarks were part of a response to the opening of new competitor Cofix, which sells its coffee at lower prices than its rivals. The competing coffee chains reportedly discussed plans not to lower prices in response.

The nation’s Antitrust Authority has invited the public to lodge a complaint with the regulator about the possible collusion, describing it as “the most effective way to deal with a cartel.”

Full Content: Haaretz

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