THE WHAT? Colgate-Palmolive and its main Israel importer S. Schestowitz are being investigated by the Israel Competition Authority over allegations the two companies worked together to try and block comparison imports as requested by Colgate, according to a report by Haaretz.com.
THE DETAILS An email with a trail of more than 2,000 documents was found by the ICA, which are said to highlight the personal care giant’s attempt at blocking other importers bringing in its products.
By stopping other importers, Colgate-Palmolive would be able to avoid the lowering of prices due to less market competition.
Allegations against Schestowitz state, “Colgate handed down to Schestowitz a reporting practice stating that importers and Colgate’s units in various countries (including countries where parallel imports are discovered, and those where products sold as parallel imports originate) are told to work to limit parallel imports.”
Schestowitz has countered this allegation, stating it was not told to block parallel imports, but that conversations about parallel imports were essential for its business operations.
THE WHY? Colgate-Palmolive sent Schestowitz an email in 2015 that is said to have made clear its intention of preventing the parallel imports due to the negative impact of the process on its business. It said that the situation must be limited to the extent it is legal to do so.