Antitrust Authority reexamining policy on monopoly prices

By
April 18, 2016 20:28
1 minute read.
money

money. (photo credit: REUTERS)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later

The Antitrust Authority on Monday said it was reviewing a policy that would allow it to tackle monopolies for price gouging.

Two years ago, the authority announced that it would go after companies that charge take advantage of their market power to overcharge for products. Companies with over 50% market share that charged over 20% of their production costs could be sued in class action lawsuits, though they would not be subject to criminal sanctions. It would also consider how similar products were priced abroad and the business risk in the industry.

Be the first to know - Join our Facebook page.


Since then, however, the Authority ran into difficulties, and never put together a complete enforcement mechanism. It also said that developments since the 2014 ruling had reshaped its thinking.

While price gouging remains a clear negative consequence of market concentration, the Authority wrote in a release on the matter, it is no longer clear if it is an Antitrust issue.

Recently, a court hearing a case on Tnuva overcharging for cottage cheese released new guidance on the matter, which the Authority said may alter the approach.

The Authority speculated that the 20% benchmark could prevent companies from investing, and thus ultimately harm the public, and that price controls might be more effective.

In that light, the Authority reopened its policy for review, and has invited comments from the public through June 16, after which it will make a new decision on its approach.


JPOST VIDEOS THAT MIGHT INTEREST YOU:

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Workers strike outside of the Teva building in Jerusalem, December 2017
December 18, 2017
Workers make explosive threats as massive Teva layoff strikes continue

By MAX SCHINDLER