Client updates

In May, a US federal court ordered Israeli firm NSO Group to pay $168 million to WhatsApp. The ruling raises key questions about US jurisdiction over foreign companies and defense tech regulation.

EU foreign ministers have decided to explore the possibility of cancelling the EU-Israel Association Agreement due to allegations that the war in Gaza is raising doubts concerning Israel’s commitment to the safeguarding of human rights.

In Israel, many employers customarily employ teenagers during the summer vacation. Since the school year is coming to a close, we are recapping highlights of the Youth Employment Law to remind employers about what is permitted and prohibited when employing teenagers.

Employers employing more than 518 employees obligate to prepare two annual reports specifying the gender wage disparities in the workplace, publish publicly and internal.

On April 25, 2025, the public transportation fares were updated in the second phase of the “transportation justice” reform. The new fares may affect the rate of reimbursement of employees’ travel expenses.

During the Swords of Iron War, it became evident that employees of the United Nations Relief and Works Agency (UNRWA) were working for Hamas and had participated in the October 7 massacre.

A court ruling handed down last month examined a fundamental practical issue: Can a material change be made in an imported product in order to change its classification for customs purposes?

The provision eliminating the de minimis exemption for low-value imports from China to the United States—previously granted for products valued under USD 800—has come into effect.

On Tuesday, April 29, 2025, the President of the United States signed an Executive Order and a Presidential Proclamation, easing some of the customs tariffs on automobiles imposed at the beginning of April.

The Israeli Privacy Protection Authority (PPA) published a draft directive recently to clarify its position about how businesses and organizations should apply the provisions of the Privacy Protection Law and the privacy regulations to artificial intelligence systems.

Bank Hapoalim and Israel Discount Bank will each pay the State Treasury ILS 40 million within the framework of an administrative settlement, in respect of their acquisitions of minority stakes in a competitor.

The US government has recorded another big win in the battle that US law enforcement agencies have been waging for years against Google.

Owners of buildings designated for long-term rentals are entitled to significant tax benefits that are being granted in order to encourage the construction of buildings that include residential apartments earmarked for long-term rentals.

The Ministry of Finance, in conjunction with other government ministries, is currently formulating a plan to reduce the US trade deficit with Israel, in order to reduce the tariff rate that the Trump administration has imposed on goods imported from Israel. According to reports, one of the proposals currently being considered is to exempt US companies from reciprocal procurement obligation in exchange for their winning large-scale tenders in Israel.

On April 5, 2025, the United States imposed a 10% reciprocal tariff on all products being imported into the United States (with exceptions). In relation to countries with a large trade deficit with the United States – including the State of Israel – a special reciprocal tariff was imposed on imported products, which is calculated according to the magnitude of the trade deficit. The special reciprocal tariff was frozen for 90 days in order to allow the parties to reach agreements on ways to reduce the trade deficit.

According to press reports, on the eve of the Passover holiday, the Minister of Economy and Industry, Nir Barkat, decided to adopt the recommendation of the Advisory Committee on Trade Levies and impose a dumping levy on cannabis imports from Canada at a rate of up to 165% (the levy varies depending upon the manufacturer). On April 21, 2025, the Minister of Finance wrote a letter to the Minister of Economy expressing his opposition to the imposition of the levy, and the decision was put on hold.

Significant tariffs are currently being imposed on international trade between China and the United States, which effectively blocks direct trade between the two countries.

President Trump has repeatedly called for a lowering of the interest rate in the United States, while intensifying his attacks against the Chairman of the Federal Reserve, Jerome Powell, and threatening to fire him. According to recent reports, removing Powell is of the table for now, but there is no guarantee the proposal will not resurface in the future.

The Israel Securities Authority (ISA) recently published a report summarizing its findings regarding offerings of securities without a prospectus. The report is intended for entities planning to offer securities to the public and presents the ISA’s position regarding the criteria for various exemptions enabling entities to offer securities without a prospectus.

Earlier this month, the European Data Protection Board (EDPB) issued draft guidelines on the processing of personal data through blockchain technologies.