Panel approves sale of Channel 13 to government critic, setting up potential constitutional crisis

The Second Authority commercial broadcasting regulatory body approves the sale of Channel 13, one of the two dominant commercial broadcasters in Israel, to the Merit Spread Foundation philanthropic group which has itself been backed by a group of hi-tech entrepreneurs, led by Wiz co-founder Assaf Rappaport.

The sale of Channel 13 has been at the center of a political imbroglio, due to the government’s opposition to the sale, apparently due to Rappaport’s outspoken criticism of the government, first over its judicial overhaul agenda and then over its handling of the hostages held by Hamas in Gaza.

Communications Minister Shlomo Karhi describes the decision as “unlawful,” noting that the government has “already determined that the decisions and outcomes of the unlawful council’s actions will be retroactively voided.”

The far-right Likud minister says the investors “gambled their money on a wild goose chase,” adding “the risk is on you.” The government in July vowed to reject a decision by the outgoing Second Authority Council which the High Court of Justice had explicitly authorized, sparking concerns of a constitutional crisis which may now re-emerge.

Approval of the sale of Channel 13 became a highly charged political and legal issue due to the government’s opposition to the sale of the channel to Merit because of Rappaport’s criticism of the government.

In March, Karhi made a series of controversial appointments to the Second Authority Council in which critics said were designed to thwart the buyout of Channel 13.

The High Court of Justice froze the appointments in May as it evaluated the case, and when Karhi apparently orchestrated a series of resignations from the outgoing council to deny it a quorum and thereby prevent it from approving the sale, the High Court issued a controversial decision saying the resignations would not be taken into account when considering the quorum.

This decision enabled the Second Authority Council, which currently has just seven members, to make a decision on the sale of Channel 13 to Rappaport, paving the way for today’s authorization.

In an unprecedented step, the government in July issued a cabinet resolution saying it would not respect a decision taken by the council under those circumstances, essentially rejecting the High Court’s ruling and sparking fears of a constitutional crisis.

Just last week, the High Court annulled three of Karhi’s appointments for a new council, and ordered all the other appointments made in March to be reviewed, leaving the outgoing seven-member council in place until that time.