Ice cream maker Ben & Jerry's announcement that it will stop selling its product beyond the Green Line is illegal under the 2001 merger approval decision between Unilever Global and Ben & Jerry's, former Antitrust Commissioner Dror Strum has informed the Israel Competition Authority.
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Strum was head of the Competition Authority and as Antitrust Commissioner approved the merger 20 years ago.
In a letter to Israel Competition Authority Director-General Michal Halperin, Strum explained that under the terms of the 2001 merger, Unilever was obligated to maintain a complete separation between Ben & Jerry's Global and Ben & Jerry's Israel licensee. The terms stipulate that Unilever and Strauss Ice Cream and Ben & Jerry's "not take any action that may interfere with the franchisee's activities in the country."
Strum said last week's decision to restrict sales over the Green Line was "illegal, contrary to the conditions, and has devastating and immediate consequences for the licensee in Israel."
Strum has sent a written notice to Ben & Jerry's Global, warning them they are violating the Israel Competition Law and the terms of the merger.
"As long as Unilever wants to continue to sell ice cream in Israel, it must continue to sell Ben & Jerry's in Israel and in all its areas," Strum said.
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