Commissioner for Competition Clarifications in Light of the Security Situation
In light of the security developments, on 2.3.2026, the Commissioner for Competition published a clarification summarizing the position of the Israel Competition Authority regarding business conduct during a state of emergency. The notice presents a two-dimensional position: on the one hand, the Authority clarifies that competition laws continue to apply in full, and that a state of emergency does not justify deviation from the basic principles of the law; on the other hand, in exceptional circumstances it may be possible to consider a practical and flexible response to difficulties arising from the constraints of the period, provided that the response stays within the boundaries of the law and does not reduce competition beyond what is required.
Cooperation Between Business Entities
The Authority recognized that during emergency periods significant disruptions to business activity may arise – from harm to manpower and production capacity, through supply and operational difficulties, and up to rapid changes in demand and regulatory delays. In these circumstances, certain types of cooperation may help stabilize activity and even support the preservation of effective competition over time, for example for the purpose of ensuring supply, dealing with a localized shortage, or maintaining continuity of essential services.
According to the Commissioner’s clarification, the main framework for examining such cooperation is the Antitrust Rules (Block Exemption for Joint Ventures), 2006, which are intended to allow cooperation between business entities that is not expected to have a negative effect on competition; and insofar as the arrangement meets the conditions specified in the block exemption, the parties may enter into it without applying for an approval or exemption. It was further clarified that the system for responding to questions regarding block exemptions is available for guidance and interpretation, prior to taking steps in practice.
Merger Transactions
As part of the clarifications, the Commissioner sharpened the rule whereby, when a merger transaction requires approval, no action amounting to implementation of the merger transaction may be taken before the Commissioner’s consent to the merger is received (section 19 of the Economic Competition Law, 1988). At the same time, it was noted that in the current circumstances the “interim period” may be particularly sensitive for businesses: prolonged waiting may, in some cases, cause irreparable harm to businesses seeking to merge. Accordingly, it was stated that parties who have already submitted a merger notice, or who intend to submit a merger notice, may approach the Israel Competition Authority in order to examine solutions to difficulties that may arise during the interim period as a result of the exceptional situation – and this until the Commissioner’s decision is received, and without a temporary solution becoming an early consummation of the transaction.
In addition, it was noted that the Markets Department is available to the public for inquiries on matters of mergers, exemptions, and the Food Law; and that, in inquiries concerning mergers that have been submitted, one should first contact the head of the handling team.
Extension of Deadlines for Data Requests
The notice also included reference to deadlines set for responding to data requests. The Authority clarified that certain deadlines will be deferred in accordance with the period of applicability of the emergency regulations, with respect to requests under: section 46(b) of the Economic Competition Law, section 22 of the Law for the Promotion of Competition in the Food and Pharma Sector, and section 42 of the Law for the Promotion of Competition and Reduction of Concentration. However, it was clarified that when the Authority insists on receiving a response by the original deadline – no deferral will apply.
It was further noted that an automatic deferral does not apply to data requests sent במסגרת a merger review, and in these cases, as needed, a dedicated coordination with the relevant handling party is required.
Competition Laws Continue to Apply in Full Even During a State of Emergency
Alongside the possibility of flexibility in appropriate cases, the Commissioner emphasized that the norms applicable under the Competition Law remain in force during this period as well. In this context, it was clarified that the prohibition applicable to a monopolist against abusing its status, in a manner that may reduce competition or harm the public, continues to apply; and that the Israel Competition Authority is monitoring developments in the economy and will take measures within its authority against cooperation and unilateral actions by business entities that will exploit the special state of emergency that has arisen and act in a manner that may harm competition and the public.
The Global Picture: Oil Prices Rise, and Competition Authorities in Europe
In parallel with developments in Israel, the global trend – and especially in Europe – indicates a tightening of regulatory oversight around energy markets, against the background of sharp volatility in oil prices and direct implications for the cost of living. In periods in which consumer fuel prices are updated quickly and by sharp rates, competition authorities tend to closely examine whether the increases reflect real cost changes or whether other factors exist, including behaviors that may be interpreted as coordination or exploitation of market power.
Against this background, it is reported that several authorities in Europe have publicly declared monitoring of fuel and energy markets. In the United Kingdom, for example, emphasis was placed on vigilance regarding the prices of essential products such as motor fuel and heating oil, alongside a deterrent message against attempts to generate unusual profits “at the consumer’s expense.”
At the European Union level, it was clarified that ongoing monitoring of fuel supply markets is being conducted, and that steps will be taken in the event of suspicion of breaches of competition laws. In Germany, the federal authority announced that it is continuously analyzing price trends and is in contact with governmental bodies, while emphasizing that not every gap between the crude oil price and the price at the pump constitutes, in and of itself, an immediate basis for suspicion – but that unusual changes may definitely trigger an in-depth review. In Ireland as well, it was emphasized that enforcement teams are examining approaches and contacts in the market relating to heating and fuel, with the aim of identifying in advance possible violations of competition and consumer protection laws.
The practical implication for companies operating in a global environment – including energy and infrastructure companies, importers, distributors, logistics providers, and companies with high fuel expenditures – is that regulatory risk increases during periods of volatility. Pricing decisions, changes in commercial terms, communication with competitors, and seemingly routine information-sharing may be examined retrospectively under a more stringent standard.
Accordingly, it is recommended during this period to sharpen internal compliance rules, ensure documentation of legitimate commercial considerations (such as changes in costs, insurance, transportation and financing), and avoid conduct that may be perceived as industry-wide alignment.
