Justice Minister Gideon Sa'ar decided to use the boycott law passed in 2011 to sanction Ben & Jerry's and its parent company, Unilever.
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The American ice cream manufacturer is in the government's sights following its decision to suspend its licensing agreement with Ben & Jerry's Israel after the country refused to discontinue the sale of the brand's products in Judea and Samaria.
In coordination with Finance Minister Avigdor Lieberman, Sa'ar authorized anti-boycott regulations against the company. However, the decision must still be approved by the Knesset's Law and Constitution Committee.
"The State of Israel must fight against boycott attempts, which are part of a broader strategy to delegitimize the Jewish state," said the Justice Minister.
Last week, Ben & Jerry's Israel CEO Avi Zinger called on the government to take action against Unilever Global, saying it was promoting the Boycott, Divestment and Sanctions (BDS) movement.
"The country's impotence in the face of a company that takes boycott action undermines Israel's deterrent power and will cause not only considerable damage to Ben & Jerry's Israel but to many other companies in the future," wrote Zinger. "Implement the anti-boycott law without delay," he added.
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Knesset member Simcha Rothman, a part of the Law and Constitution Committee, said that Sa'ar's decision should have been made six months ago, pointing out that it was absurd that several American states had taken such actions measures before Israel.
"Better late than never, and I hope the committee will approve this decision," he said.
i24NEWS contributed to this report.
