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Israel's Antitrust Authority declared Haifa, Ashdod ports an oligopoly

The aim of the declaration is to authorize him to give directives to the port companies in order to avoid harm to the public or to competition and to boost competition
03.12.13 / 00:00
Israel's Antitrust Authority declared Haifa, Ashdod ports an oligopoly
03.12.13
Israel's Antitrust Authority declared Haifa, Ashdod ports an oligopoly

Antitrust Authority director Dr. David Gilo declared the Haifa and Ashdod port companies monopolistic. Its aim of the declaration is to authorize him to give directives to the port companies in order to avoid harm to the public or to competition, or to create conditions that will boost competition.

The Israel Antitrust Authority (IAA) is an independent government enforcement agency tasked with regulating mergers and preventing cartels from dominating Israel's economy. The IAA, is vested with the power to initiate civil and criminal proceedings and to order monopolies to refrain from acting in a manner which constitutes abuse of dominant position.

The two state-owned seaports are notoriously subject to frequent work stoppages and slowdowns because of the enormous strength of their unions.

Prof. Gilo also warned the workers committees of the two ports not to harm the privatization process, and that the two ports companies would not be permitted to operate the planned new container terminal which will be built in the port of Ashdod or Haifa.

In a written statement t Gilo noted, "I intend to order the port companies not to take any action that could frustrate, interfere with, or cause difficulty to the entry into the market or the activity of an additional operator of the planned Haifa Bay Port or the planned Ashdod South Port."

Prof. Gilo also warned the workers committees of the two ports not to harm the privatization process, and that the two ports companies would not be permitted to operate the planned new container terminal which will be built in the port of Ashdod or Haifa.

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