Israel’s Competition Authority announced on Tuesday, May 11, that it was considering imposing a fine of about 6 million shekels (US$1.8 million) on Facebook for buying two Israeli companies without the agency’s consent.
The authority stated it sent a hearing letter to Facebook after it found the social media giant purchased two Israeli companies, RedKix in 2018 and Service Friend in 2019, without approval and contrary to Israel’s Economic Competition Law.
“Facebook was obliged to report the transactions required the director general’s consent since Facebook is a ‘monopolist’, whose market share in Israel exceeds 50%,” the authority stated.
It stated the fine is subject to a hearing and Facebook has the right to submit its arguments to the authority’s director general within 60 days, reported CNBC.
Under the law, an entity which holds 50% or more in any relevant market is required to obtain the director general’s consent before making any transaction that constitutes a “merger of companies,” it noted.
The authority said Facebook, together with Instagram, is considered a monopoly in the market of social networks in Israel.
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