Promotion of Competition in the Food and Pharma Sectors Law (Amendment No. 9) Bill

What does the bill do?

Today, under the law, the sales turnover according to which a "pharma retailer" is defined as a "large pharma retailer" stands at about 287 million new shekels (this amount is identical to the amount according to which a retailer in the food sector is defined as a "large retailer"). Under the new arrangement, a "pharma retailer" will be defined as a "large pharma retailer" if its revenue turnover stands at 450 million new shekels, instead of 287 million shekels, and it will also be required to hold at least 12 pharma stores. It should be noted that the definition will apply only to pharma retailers, while the definition of "large retailer" in the food sector will remain as it was. The change in the definition is intended to adapt the existing law to the characteristics of the pharma market, which is characterized by high concentration and by difficulties for new players entering the market. Defining a retailer as a "large retailer" has broad implications, since the existing law imposes a series of stricter provisions that apply only to a large retailer; these provisions include, among other things, restrictions on actions that a large retailer may take in its relations with suppliers, provisions concerning maintaining competition between retailers operating in the same geographic area, and various obligations regarding price transparency. As a result of the amendment to the law, the number of pharma retailers to which such stricter provisions apply will be reduced, and this will make it easier for new players to enter the market and will promote competition in the sector.