Competition watchdog indicts three supermarket chains for price fixing
Victory, Yochananof, Super Bareket and their CEOs are charged with making illegal agreements to coordinate prices and promotions
Sharon Wrobel is a tech reporter for The Times of Israel
Israel’s competition watchdog on Wednesday filed indictments against CEOs, senior executives and owners of supermarket chains Victory, Yochananof and Super Bareket, charging them with price fixing and engaging in cartel behavior.
The Israel Competition Authority issued indictments against Victory owner and CEO Eyal Ravid, Yochananof owner and CEO Eitan Yochananof and deputy CEO Elad Harazi, and Super Bareket CEO Ephraim Tshuva. The indictments were filed to the Lod central district court.
The indictments follow a complex investigation that goes back to 2021, on suspicions that the owners and managers of the supermarket chains were engaged in cartel behavior and price fixing in violation of the Competition Law, as well as in breach of the Food Law. Ahead of the indictment, the competition authority summoned CEOs and senior executives of Victory and Yochananof in June for a hearing for allegedly coordinating prices.
According to the indictment, Raviv is charged with seven counts of intending to influence competition by making illegal arrangements, including with other retailers to bring about broad price increases in 2021. The regulator cites numerous public statements made by Raviv during interviews on TV, radio and social media channels about price changes to signal to major food retailers that the chain was considering raising prices in an attempt to reach a restrictive arrangement with them on price hikes.
Harazi, Tshuva and Yochananof are also charged with numerous counts related to agreements to coordinate prices.
The three supermarkets are accused of reaching an agreement amongst themselves during a phone conversation between senior executives that the chains would not offer special promotions due to the market conditions that prevailed at the time. The restrictive arrangement was reached to maintain the gross profit levels of the chains after the purchase tax on disposable plastic items was increased in 2021, the regulator charged.
In addition, Ravid allegedly attempted to coordinate consumer prices with suppliers of other retailers, which is an infringement of the Food Law. The watchdog cited a number of cases in which Ravid contacted different suppliers and asked them to raise the consumer prices of their products at other retailers, including the Rami Levy supermarket and Yochananof chains.
In response, a statement from attorneys representing Victory and its owners stated that Ravid and the company rebuff the charges in the indictment as having “no basis whatsoever.”
“It is nothing more than a precedent-setting trial balloon launched by the Competition Authority, which distorts and inflates the reality of the situation,” the statement read. “Since its establishment, Victory has served as a key player in promoting competition and lowering prices for consumers.”
“We are confident in the righteousness of our clients’ path, and their innocence will be proven in the honorable court,” it was added.
Similarly, the Yochananof chain said it is confident that “no offense has been committed.”
Listed on the Tel Aviv Stock Exchange, Victory operates a chain of 67 discount grocery stores and hypermarket stores across Israel. The Yochananof chain has 44 discount supermarkets all over the country, and its shares are also traded on the Tel Aviv bourse.
