Latest Updates /  Internet

Recently, one of the most popular Facebook pages in Israel, by the name of "Twitting Statuses", was suspended and later permanently removed by Facebook. The reason for such action was that the operator of that page (the "Operator"), so it is understood, was paid to publish commercial content on that Facebook page, without going through the Facebook advertising system and without providing any due disclosure that such content was indeed paid for. It appears that the Operator offered various media packages to advertisers fixing prices based on different kinds of exposure on this page. After this manner of operation became public knowledge, Facebook suspended the page and a few days after that permanently removed it. Facebook stated that these actions were taken because the Operator had breached Facebook's terms and conditions. According to Facebook, the Operator received warnings about his manner of operation, but ignored them. Despite the Operator's efforts, which included going public with Facebook's actions and publishing a letter sent from him to the head of the Israeli office of Facebook, his efforts to change Facebook's decision were unsuccessful. Without getting into the legal spat between Facebook and the Operator, this turn of events proves the importance of following the terms and conditions of Facebook. All of the work and effort of the Operator will probably go down the drain, causing him substantial financial loss and diminution in value in connection with this Facebook page. And this is not something to trifle with - according to newspaper reports, the Operator, prior to this turn of events, asked to receive NIS 10,000,000 (approx. USD 2.5M) for the page and had 700,000 followers (and claimed to reach exposure of millions). Given the fact that this kind of business lives or dies on the existence of the Facebook page, and that it operates on a platform owned by a third party, it goes without saying that where the business is intended to generate followers and create value without adhering to the terms and conditions of the third party owned platform, it is reasonable to believe that sooner rather than later, such value will dissolve into thin air. Further,  where there are third party investors that are involved in such a business, this could establish a cause of action against the entrepreneur who used their investments for purposes of the business; where such a core fundamental element of the business is questionable, there is a possibility that the investors will seek to recover damages from the entrepreneur. So, entrepreneurs – pay close attention to the rules of any third party you rely on for the purpose of creating value for your business, failing which , you could expose yourself to financial difficulties on a number of fronts.

In 2014, the online gambling industry faced many challenges, mainly due to regulatory issues but also due unsatisfactory results in several jurisdictions with the US States of Nevada and New Jersey probably the most disappointing in this respect. According to our head of gambling practice, 2015 will probably be challenging as well. One reason for this is that the new legislation in England, which came into effect towards the end of 2014, requiring any online gambling operator offering is services in England to operate under an online gambling license issued by the local Gambling Commission, as well as pay a substantial gambling tax. For the full article, please Click here

Barnea has once again been chosen to be included in the 2015 InterGame Year Book Directory as one of the law firms advising the gaming and games industries.

We are the authors of the Israeli chapter in the International Comparative Legal Guide to Gambling 2015. The Guide covers a range of topics including: relevant authorities and legislation, application for a license and license restrictions, enforcement, liability and more. This publication is one of 38 ICLG guides published which cover all major practice areas and provide in-house counsel with a legal overview in different jurisdictions.

Our Head on Internet Department was nominated as a leading practitioner in the field of entertainment in Israel by the 2014 edition of Whos' Who Legal, one of the leading global legal guides.

The unending struggle of keeping the net neutrality will determine how internet suppliers treat online content. In the meantime, Netflix is not satisfied .

Barnea's partner and head of internet department published an article (in Hebrew) in the Calcalist financial newspaper, regarding a recent Israeli court decision that compensated a plaintiff for defamation published against him on Facebook. Dr. Baruch criticizes the court's reasoning, that sought to place less importance and magnitude in respect of defamation published on Facebook, compared to defamation published via other avenues. Dr. Baruch argues, as outlined in the article, that defamation published on Facebook should be treated in the exact same manner in which any other published defamation is treated.

Barnea's partner and head of internet department, published an article in the InterGaming Law magazine, the specialist international gaming law magazine: Casino in Israel - could the notion materialize.

On November 18th, the Israel Bar will hold a panel in respect of online gambling. Our Head of Barnea's internet and e-commerce department, will participate in the panel.

In 2010, the Israeli Parliament enacted the Securities Law , creating the framework for the licensing of the online financial trading industry in Israel. The Act is the first attempt of the government to regulate online financial trading in Israel, which is unregulated at all, allowing rogue operators to act, causing damage to consumers and to the reputation of respectful operators.

Barnea represented Orid Media Limited in its sale of certain of its assets and liabilities, including its subsidiary, Pariplay Limited, an Isle of Man online gambling licensee, to a partly owned subsidiary of Majesco Entertainment Company, a NASDAQ listed company. The transaction will see Majesco invest a sum of between $3.5 to $4.5 million.

Barnea represents Mr. Menny Benish, Player 2 Player LTD. and R.I.I.G Limited, in a claim for over 12 M NIS against Moshe Tisona and Yalciner Enterprises Ltd.

Trading online financial services, be it foreign exchange, commodities, share prices or stock indexes is the attracting customers all over the world; This has led several jurisdictions to introduce legislation aimed at licensing and regulating the online financial trading market. 

Is it justifiable to block gambling sites? According to a Justice Department memo, a competent police officer may issue an order restricting access to a Web site, if there is a reasonable suspicion that the website is used for betting and that the site will continue to be used for betting if access is not restricted