The Antitrust Authority is set to indict bookstore chain Steimatzky Ltd. and its CEO, Iris Barel, subject to a hearing, on restraint of trade charges in two separate cases.
The first case involves events between November 2010 and June 2011, when Steimatzky demanded exclusivity in sales campaigns from various publishers for Steimatzky customer club members, so that competitors could not offer discounts on the relevant books.
The second case occurred in July 2011, when, according to the indictment, Steimatzky demanded exclusivity from various publishers in the bookstore's sales for that month, so that competitors could not offer their own discounts.
The Antitrust Authority opened an investigation into the incidents. The backdrop to the investigation was the 1995 acquisition by Steimatzky of Sifrei Merkaz Lahafatzat Hasefer Ha'Ivri Ltd., which the Antitrust Authority approved, with restrictions. One of the restrictions was that Steimatzky could not restrict a publisher's commercial relations with any of its customers.
The Antitrust Authority says that, in the two cases, Steimatzky and Barel violated the terms of the merger by restricting publishers' commercial relations with other customers.
Steimatzky said in response, "We believe that the company and its CEO have not violated the Restraint of Trade Law. We have always acted honestly and pursuant to all law, and we will explain this in the hearing. We believe that our position will be accepted."
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2013
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