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11 Nissan 5761 - April 4, 2001 | Mordecai Plaut, director Published Weekly
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NEWS
Matzoh Cartel Thwarted
by Betzalel Kahn

In light of the cartel which apparently took place between matzoh manufacturers last year, the authorities are currently continuing their investigations, in order to prevent a cartel in matzoh prices this Pesach.

Monday 9 Nisan it was reported that the Enforcement Department of the Restraint of Trade Authority demanded that the large chains -- Super-Sal, Co-op, Blue Square and Club- Market -- provide information about the matzoh market.

The Restraint of Trade Authority asked for details regarding existing agreements between them and the matzoh manufacturers in the country, as well as for the prices at which the chains purchase matzos, the prices of the matzoh manufacturers and the discount rates for the chains. The food market chains transferred this information to the Authority this week and the data is being examined.

Last year, the Authority conducted an investigation of a suspected cartel between manufacturers. It also thought that such a cartel had been in effect in previous years too. Last year, suspicions with respect to the existence of covert arrangements among most of the matzoh manufacturers and the flour mills regarding the prices of matzos for the public was investigated.

In the wake of the results of last year's investigation, the head of the Restraint of Trade Authority asked the Court for a temporary order preventing the cartel this year, in order to prevent immediate financial damage to matzoh consumers. The order was issued, and thereby a price rise which the cartel would have caused was prevented. The investigation of the matzoh manufacturers ended with a recommendation that indictments be presented against those involved in the affair. The issue is currently being investigated by the Legal Department of the Authority.

 

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