An investigation conducted by the Authority, following a complaint, shows that SOS has instituted a policy towards its customers according to which it will not continue to provide refueling services to its customers who purchase these services also from competitors. This policy, which in effect means a requirement to grant exclusivity to SOS in the provision of the service at all customer sites, was expressed in direct contact with customers while threatening to discontinue customer service at all its sites across the country if it does not stop purchasing refueling from its competitors. The Authority’s investigation also shows that this policy was well-known among SOS ‘competitors.
SOS’s exclusivity requirement may make it difficult for existing and potential competitors to enter or expand the market gradually. Large-scale and rapid entry into the market requires large financial resources and increases the risk for competitors entering the market and thus reduces the chance that competition will develop in the off-road refueling market.
After hearing the company’s claims and its position, and after consulting with the Committee on Exemptions and Mergers, the Commissioner decided to impose a financial sanction on the company in the amount of NIS 6.3 million, in addition to sanctions in the amount of NIS 350,000 for a senior SOS officer.
The financial sanctions imposed are part of the Competition Authority’s enforcement policy against monopolists who use their status in a manner that may harm competition and the public. Previous sanctions for the abuse of status of a monopoly owner have been imposed on the port of Ashdod, the Electric Company, Bezeq and the Central Company (Coca-Cola). In other cases, the proceedings ended with agreed orders in which the violators undertook to pay a financial sanction to the state treasury in lieu of enforcement.
This decision continues the PA’s enforcement policy in recent years to operate even against undeclared monopolies. The Authority considers monopolists, even if not declared, responsible to refrain from exploiting their status in a manner that may reduce competition in the markets in which they operate, even if they have not been officially declared monopolists.