The Antitrust Authority officially announced today (Tuesday) that it opposes the merger of the cellular companies Cellcom and Golan Telecom.
According to the Antitrust Commissioner, such a merger could have led to harm to competition in the market and increased prices for the consumer.
""The main concern is that as a result of the Golan disappearing from the map, the market will regress back to a state of lack of competition and a quiet understanding by the large companies that it is desirable for them to maintain a state of non-competition," the authority said.
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The Ministry of Communications announced that they respect the decision of the Antitrust Commissioner.
The Prime Minister, in his capacity as Minister of Communications, also decided to reject the request, similar to the position expressed by the Minister of Finance when submitting the merger request.
Fearing collapse and layoffs, the company's employees appealed to the Prime Minister to approve the merger. About 150 of the employees demonstrated in front of his office on Sunday and called on him to support the agreement.
The workers' demonstration occurred after Golan Telecom CEO Michael Golan was interviewed by News 2 and claimed that if the merger is not approved, the company will collapse and employees will be laid off.
Golan Telecom said: "This is a dark day of mourning in the history of the economy and the economy in Israel. We regret the decision that was made, which is entirely against the continuation of competition. The decision on the subject is purely political, with no economic context.".
""Communications Minister Kahlon's reform was never complete, Minister Erdan never approved the network unification agreement, and Prime Minister Benjamin Netanyahu, by not approving the agreement, seals the deal for the company's future.".
""Due to petty and personal considerations, politicians are not acting in the public interest and for the benefit of the consumer community. The politicians chose Golan Telecom as a scapegoat and victim despite it being the only example in the history of the State of Israel of true competition that saves 5 billion shekels each year and 10 thousand shekels per household since its establishment.".
""Beyond the personal harm to every household and every consumer in Israel, the broader and more dramatic impact will be in stopping foreign investments in the Israeli economy following Israel's failed conduct and in complete contradiction to the OECD's rules of conduct.""
