Meta fined over $6.5 million for not reporting acquisitions in Israel
Meta fined over $6.5 million for not reporting acquisitions in Israel
Meta, which at the time of the acquisition of the two companies (Redkix and Servicefriend) had a monopoly in the social media market, did not apply for approval from the Israel Competition Authority as required
The Israel Competition Authority has reached an agreement with Meta Platforms (formerly Meta-Facebook) on the payment of a fine of 25 million shekels ($6.6 million), after it did not apply to receive the authority's approval for the acquisition of two startups - Redkix - which developed inter corporate chat software - in 2018, and Servicefriend - which developed bots for customer service - in 2019.
According to the Authority's statement: "After hearing Meta, conducting additional checks, and consulting with the Committee for Exemptions and Mergers, and before making a decision on the matter, the commissioner reached an agreement with Meta according to which Meta will pay an amount of 25 million shekels to the state treasury, and undertake to report any acquisition of companies it carries out, in a notice according to the section in the competition law that applies to the owner of a monopoly."
"The director general believes," the announcement reads, "that under these circumstances, where, on the face of it, the mergers of the companies that Meta did not report would receive the commissioner's consent without conditions, reaching an agreement that includes the payment of a significant amount to the state treasury is an effective and just solution, which promotes the purposes of the competition law".
A Meta spokesperson said in response: “We welcome the settlement as all parties can turn the page. We have always complied with our reporting obligations under Israeli law, and will continue to do so.”
