Israeli Executives Charged with Price Fixing in Supermarket Cartel

The Israel Competition Authority (ICA) announced on Wednesday that it had filed indictments against top executives from several major supermarket chains, accusing them of engaging in price fixing and cartel activity. The charges target executives from Victory, Yochananof, and Super Bareket supermarket chains.

According to a statement from the ICA, indictments were filed against Eyal Ravid, owner and CEO of Victory; Eitan Yochananof, owner and CEO of Yochananof; Elad Harazi, deputy CEO of Yochananof; and Ephraim Tshuva, CEO of Super Bareket. The charges, which were presented to the Lod central district court, follow an investigation that began in 2021 and uncovered alleged violations of both the Competition Law and the Food Law.

Per a statement issued by the competition watchdog, the investigation suggested that the supermarket chains’ executives had coordinated prices in a way that undermined market competition. Ravid, in particular, is accused of attempting to influence consumer prices by contacting suppliers from other retailers, including Rami Levy and Yochananof, and pressuring them to increase their prices, a move that constitutes a breach of the Food Law.

In response to the charges, legal representatives for Victory strongly rejected the allegations, labeling them as baseless. “It is nothing more than a precedent-setting trial balloon launched by the Competition Authority, which distorts and inflates the reality of the situation,” said the statement. “Victory has always been committed to promoting competition and lowering prices for consumers.”

Similarly, Yochananof’s legal team asserted that no wrongdoing had occurred, expressing confidence that the chain would be cleared of any offense.

Victory, a prominent player in the Israeli grocery market, operates 67 discount stores and hypermarkets across the country. Yochananof, with 44 supermarkets, also holds a strong market presence, with both chains listed on the Tel Aviv Stock Exchange.

Source: Times of Israel