Israeli Jurisdiction Over Foreign Cartelists

Recently, an Israeli District Court addressed the jurisdiction of Israeli courts over foreign companies accused of being part of a prohibited cartel that acted outside of Israel but had an impact on market prices – and caused damages to consumers in Israel. The Court held that if the cartel arrangement was effected outside of Israel, and the cartelists took no actions to implement the cartel in Israel, Israeli courts have no jurisdiction over the cartelists.

The issue arose in a class action proceeding brought against foreign defendants alleged to have participated in a cartel that coordinated the prices of LCD panels. The plaintiffs claimed that the impact of the cartel was also felt in the Israeli market where products that included the panels were sold.