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Israel: McDonald’s cancels mall exclusivity agreement

By  |  January 20, 2020

Fast food chain McDonald’s Israel has canceled its exclusivity agreements in shopping centers. Following this measure, the investigation of the matter by the Israel Competition Authority will be dropped.

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    Israel Competition Authority head Michal Halperin dropped her investigation of McDonald’s after the exclusivity agreements were canceled.

    Last December, Israel Competition Authority head Adv. Michal Halperin began an investigation into the leases of McDonald’s Israel franchise holder Aloniel. McDonald’s Israel has 190 branches.

    The reason for the investigation was concern that McDonald’s Israel was in breach of a ruling that exclusivity agreements were illegal unless approval had been obtained from the Competition Authority. Under the Restrictive Trade Practices Law, such a breach could have resulted in monetary sanctions.

    Halperin discovered, however, that even before the Competition Authority had begun its investigation, the chain had canceled its exclusivity agreements with shopping centers.

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