Israeli Competition Bureau summoned supermarket chains Shufersal Ltd. (Tase:sae) And its former CEO Itzik Abercohen and other former managers went out for a hearing before being charged.
According to the accusations, Shuffersal and Aberkohen allegedly tried to reach an arrangement to raise prices. The former manager of Shuffersal and the company are suspected of violating food laws by obstructing supplier Berman at consumer prices in other marketing chains.
The decision to file charges subject to the hearing was made as part of a food market investigation, which began in 2021 by the official statement’s investigation unit, and was suspected of a violation of the Food Act.
According to the indictment, Abakohen conveyed a message to suppliers and retailers about Schufarsal’s desire to raise prices, with the aim of leading to rising prices by suppliers and retailers to increase prices in the food industry.
In his statement published on “Ma’ariv”, the YNET website and “Yediot Ahronoth”, Abercohen said, “A wave of price increases is inevitable” and “the amount of price increases will range from 3% to 7%.” Abakohen is said to have expressed himself in this way, recognising the impact of the statement on the market.
According to the second allegations in the charges, Shuffersall’s manager agreed to Berman officials supplying bread and baked goods to the chain in order to raise the consumer prices of Shuffersall’s Berman products, and as part of this, he requested that Berman employees address the consumer prices charged to the consumer prices that were charged to the consumer prices for other levels of suppliers. This is said to violate Section 6 of the Food Act. This prevents retailers from interfering with suppliers regarding the consumer prices that another retailer charges for the product.
Abakohen’s lawyer advisor. Gornitzky’s Ofer Tzur and Avner Finkelshtein said, “We want to make it clear that Abercohen has decisively rejected allegations arising from him. Abercohen has been CEO of Shufersal for many years and while leading the company, he has strictly appealed to ABTHED’s principles of public competition. A deep commitment to transparency, proper management, and compliance with binding regulatory rules.
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“The general statements cited in the letter of doubt (for the purposes of the hearing) regarding the potential for price increases were made verbally in response to questions at a single public press conference in 2021. These are some statements regarding the legal interpretation of the global economic process of the global economic process, which could lead to a rise in commodity prices.”
“Nothing in these general statements could establish any suspicion of inappropriate behavior or desire to raise prices. In reality, Schufersal was not intending to raise prices, rather took steps to prevent price increases and did not raise prices during that period.
“Mr. Abakohen did not initiate or participate in any arrangements that could harm competition or consumers. He is clearly and clearly certain that his conduct is free of defects. It is expected that competition authorities will understand after hearing a full and comprehensive review of the evidence and discussions at the hearing.”
Presumed innocent: Shufarsal and his previous manager have not been found guilty and have the right to be presumed innocent
Published by Globes, Israel Business News – En.Globes.co.il – April 22, 2025.
©Copyright of Globals Publisher Itonut (1983) Ltd., 2025.
