Antitrust Authority / Exchanges Of Information Between Competitors During Due Diligence Investigations

Israel's Antitrust Authority has issued a circular that sets forth procedures for due diligence investigations between competitors, due to the potential risk to competition created by the exchange of business information between competing entities.

The Antitrust Authority does not consider all such disclosures of information as potential risks to competition. Rather, the nature of the transaction and the measures taken by the parties to lessen harm should be evaluated. The circular sets forth the following rules of conduct:

1. Identify "sensitive" information at the beginning of the due diligence process. Factors to take into consideration include the relevant market, the nature of the information, and the potential harm to competition that could result from disclosure. Sensitive information should be provided to competitors only according to the following rules.