Israel’s Electra suing China’s Huawei over breach of contract

Electra said that Huawei “violated a partnership and distribution agreement” and conducted negotiations in “bad faith.”

By JERUSALEM POST STAFF
March 13, 2018 13:50
Israel’s Electra suing China’s Huawei over breach of contract

A logo of Huawei is seen during the Mobile World Congress in Barcelona, Spain, February 27, 2018.. (photo credit: REUTERS/YVES HERMAN)

 
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Electra Consumer Products, one of the largest importers of electronic goods in Israel, is taking on Huawei, the Chinese mobile phone manufacturer.

Earlier this week, Electra filed a NIS 80 million lawsuit against Huawei after it claimed that the Chinese company violated their agreement. Electra is the sole importer of Huawei cell phones to Israel after in 2016 it acquired 70% of ownership and control of Alpha Telecom, the importer and distributor of Huawei in Israel.

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In a filing to the Tel Aviv Stock Exchange on Monday, Electra said that Huawei “violated a partnership and distribution agreement” and conducted negotiations in “bad faith.”

Electra also asked the court to issue an injunction against Huawei to prevent it from using any information it obtained during its agreement with the Israeli company and to prevent the Chinese phone manufacturer from entering an agreement with a contractor in Israel to repair broken phones. This could adversely impact Huawei phone owners in Israel.

The lawsuit comes after Electra notified the TASE in February that it was in disagreement with Huawei about the sale goals for the phone in Israel.

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