Client updates

In March 2018 the Israel Innovation Authority launched a $264 Million National Digital Health Program, with the aim of promoting Israel as a leader in digital health, and improving the quality and quantity of digital health data to support the research and development of preventive and personalize medicine. The program includes a new National Genomic-Clinical Initiative, aimed at sequencing and analyzing the genomes of 100,000 Israeli volunteers, for the purpose of aiding drug discovery.

The Law for Reducing the Use of Cash, which is scheduled to come into effect on January 1, 2019, will have a significant impact on the real-estate sector.

Two important block exemptions have been updated recently: the exemption for joint ventures and the exemption for restraints ancillary to mergers. The amendments transfer the examination of the intensity of the harm to competition deriving from these arrangements from the Israel Antitrust Authority to the business sector.

Recently, the Israel Tax Authority published a circular discussing business restructuring in multinational groups.

With an eye to these other major markets, the Israel Securities Authority (ISA) has promulgated draft regulations for public comment that enable all reporting companies in Israel, who so desire, to publish their reports in English.

A new circular by the Israel Tax Authority determines the terms for granting options to employees when the vesting of such options is contingent upon performance milestones or the occurrence of an IPO or exit event.

The Israeli Privacy Protection Authority recently published a pronouncement whereby a collection of email addresses and the names of their owners also constitutes a database.

The Delaware Court of Chancery issued a precedent recently, whereby an acquisition agreement may be cancelled due to the occurrence of a “Material Adverse Effect” (MAE) in the acquired entity.

The Israeli Ministry of Energy published on November 26, 2018, a second call for bids, inviting international energy players to submit offers for the exploration of offshore soil.

A recently promulgated memorandum of law to amend judicial procedures proposes to add the possibility of filing claims against foreign entities in Israel for damage they caused in Israel as a result of acts or omissions performed outside of Israel.

Israeli signed the The Multilateral Instrument (MLI) Treaty, which will come into effect on January 1, 2019. The treaty will affect both Israeli and international corporations operating in Israel and overseas.

Recently, the UK Information Commissioner’s Office decided to take action against a non-European entity following an alleged breach of the GDPR.

The Ministry of Construction and Housing recently published a memorandum of law that prescribes a payment schedule for the first time that is specifically defined for urban renewal projects involving the addition of new apartments to existing buildings.

In light of the increasing magnitude and scope of cyber threats, as well as growing concerns about disruptions to public companies’ operations, the Israel Securities Authority (ISA) has published a Staff Position Statement addressing public companies’ required disclosures for all cyber-related issues.

The Supervisor of Land Registration at the Ministry of Justice accepted a lawsuit filed by the housing committee of a condominium building in Tel Aviv and forbade one of the apartment owners from using his apartment for short-terms rentals (Airbnb, Booking).

This news flash features information on the statutory day of rest during upcoming general elections for local authorities and regional councils in Israel and an update on the new amendment to the Prevention of Sexual Harassment Regulations.

Israel’s Innovation Authority (the IIA, formerly the Office of the Chief Scientist) has issued new rules regarding the licensing of IIA-funded know-how for use by multinational corporations outside of Israel.

Both Brazil and India have recently passed new privacy protection laws. These laws may also apply to Israeli companies doing business in the countries.

The Israel Tax Authority (ITA) recently launched an application that allows anyone who previously executed a real-estate transaction to check whether he or she has a credit balance in respect of an overpayment of betterment tax or purchase tax.

An amendment to a block exemption for non-horizontal arrangements with no particular price restrictions was recently approved. The purpose of the amendment to the block exemption is to clarify the term “competitors,” which was defined in a general and vague manner in the original block exemption.