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Fines of Up to 111 Million Shekels: Tighter Oversight of Parallel Imports

The Israel Competition Authority has stepped up inspections of official importers suspected of placing obstacles in the way of parallel and personal imports. This is based on an amendment to the Economic Competition Law, which took effect in September 2023.

Key facts

  • The amendment has been in effect since September 2023
  • Maximum: 8% of sales turnover, up to 111 million shekels
  • Carasso Motors: fine of 11.5 million shekels
  • Sunny Communications: approximately 17 million shekels anticipated
  • The proactive inspections covered 13 importers
  • Published in Globes on 26.08.2026

What Changed in the Law

Before the amendment, action could be taken against obstruction of parallel imports under general provisions, such as the prohibition on restrictive arrangements, but the Authority had to prove a substantial risk to competition. The new section of the law explicitly prohibits official importers from taking actions that may thwart, reduce, or impede parallel or personal imports, even when it is difficult to determine the effect of a particular action on the market as a whole.

What Practices the Authority Is Examining

The focus is on transferring information to the manufacturer that enables the parallel importer’s supply chain to be traced, attempts to halt supplies from abroad, harm to commercial terms, and interference with how the seller displays the product. Risks also arise from refusing to supply products or imposing stricter service conditions on products not imported through the official importer. After publishing its position in September 2023, the Authority proactively approached 13 large official importers from various sectors.

Fines and Ongoing Proceedings

Carasso Motors was fined 11.5 million shekels: the Authority determined that service for owners of vehicles brought in through parallel imports had been made more difficult by requiring presentation of the original warranty, even though the required information was already available in the company’s systems. Regarding Sunny Communications, the official importer of Samsung devices, a notice of intent to impose a payment of approximately 17 million shekels was issued—subject to a hearing. In other cases, financial sanctions of approximately 15 million shekels against Ofer Avnir, an anticipated fine of approximately 11.5 million shekels against Rolltime subject to a hearing, and an agreed payment of more than half a million shekels by Moshe Sidis and his son were mentioned.

Scope of Liability and Prices

The financial sanction may reach 8% of the company’s sales turnover, but no more than 111 million shekels; in exceptional circumstances, criminal prosecution may also be considered. The oversight is intended to preserve competition between official and parallel supply channels, which may lead to lower prices. However, no public data are yet available to establish that tighter oversight has in fact lowered product prices.

What this means for you

Buyers of products and vehicles through parallel imports receive stronger regulatory protection against artificial obstacles in sales and service. Parallel importing itself means importing an original product through an alternative supply chain, rather than through the official representative in Israel. However, the source does not confirm that the new fines have in fact led to lower prices for consumers.

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