Israel Competition Authority Intensifies Enforcement Measures and Indicts Schestowitz VP for a Suspected Cartel in the Food Sector
The Israel Competition Authority (ICA) conducted a thorough investigation of the S. Schestowitz Group, an Israeli company in the food and consumer goods sector, due to suspicions the company operated a cartel in the food industry in violation of the Economic Competition Law and the Law for the Promotion of Competition in the Food and Pharmacy Industries.
In December 2024, the ICA announced that it intended to summon Mr. Moshe Gozali, the company’s VP of Sales, to a hearing regarding the suspicions.
At the beginning of July 2025, the ICA filed an indictment against Mr. Gozali for destruction of evidence and obstruction of justice. According to the indictment, Mr. Gozali deleted his WhatsApp correspondence with Mr. Eyal Ravid, the owner-manager of the Victory supermarket chain, after he became aware the ICA had opened an investigation, since he knew this correspondence could be used against him during the investigation.
Examples of the Competition Authority’s Policy of Stricter Enforcement
The Economic Competition Law vests the Israel Competition Authority with broad investigative powers, as well as the authority to file indictments for violations of judicial procedures—such as destruction of evidence, obstruction of justice, impeding of an investigation, witness tampering, and witness intimidation—when these relate to the antitrust or anti-competitive offense under investigation. The law also allows the ICA to interrogate any person suspected of involvement in any of the aforementioned offenses.
The filing of an indictment involving only violations of judicial procedures, and not an antitrust violation, reflects the severity with which the ICA views actions committed with the intent to impede its investigations. The ICA has also stated that, since its enforcement capability depends on its ability to collect evidence, anyone who destroys evidence is sabotaging its ability to enforce the law.
The indictment against Mr. Gozali reflects the ICA’s policy of stricter enforcement and higher intolerance of these types of offenses. For example, in a February 2025 update, we noted that the ICA had filed an indictment against the retail chains Victory, Yochananof, Super Bareket, and their managers, including Mr. Ravid of the Victory chain. The indictments were filed for restrictive arrangements and an attempt to form a cartel in the food industry, inter alia, through public statements about expected price hikes and unlawful interference in suppliers’ pricing to retailers and consumers, in violation of provisions of the Competition Law and the Food Law.
The ICA filed a similar indictment for witness tampering and obstruction of justice about a year ago against Mr. Yaakov Goldman, the founder and CEO of the Al-Red elevator company, in addition to the principal indictment for antitrust violations. According to that indictment, Mr. Goldman allegedly coerced or attempted to coerce another defendant in the same case, Mr. Yaakov Evron, to give false testimony and retract a statement he had already given, and also took deliberate actions tantamount to obstruction of justice or perversion of justice.
Practical Measures to Prevent Exposure
These facts emphasize that Israeli companies should obtain a thorough understanding of the criminal aspects of competition law and their implications, particularly violations of penal law that might be discovered during ICA investigations, including destruction of evidence, obstruction of justice, impeding of an investigation, and witness tampering or intimidation. These are serious offenses punishable by incarceration of three to seven years, and the court often exercises broad discretion.
Israeli companies should also carefully scrutinize any actions they take in preparation for or during an investigation or legal proceeding, including actions that appear to be legitimate but that could have serious criminal consequences. It is also critical that companies fully understand the legal implications and possible repercussions before they take any action that may be deemed impeding of an investigation or obstruction of justice, especially when such actions are in response to suspected violations of competition law.
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Adv. Gal Rozent is a partner and heads the firm’s Antitrust and Competition Department.
Dr. Ran Karmi and Adv. Yarden Anavi are associates in the firm’s Antitrust and Competition Department.
Barnea Jaffa Lande’s Antitrust and Competition Department offers comprehensive legal services relating to all aspects of antitrust and competition law; represents the firm’s clients in criminal and civil courts and before the Competition Tribunal, the Israel Competition Authority’s Director General, and legislative and regulatory authorities; and provides legal assistance during business processes and on an ongoing basis.