The official importer, iDigital, is owned by the son of the President, Shimon Peres. It's SOP in Israel for exclusive distributors to get 'friends in government' to legislate against private imports so as to protect the vast profiteering by the 'official' importers. You will find the same thing with telephones, automobiles, airlines, etc. Israeli consumers pay VASTLY more than most anyone else in the world for most items, while the Israeli Oligarchs fleece the plebians. The technical excuses in all other cases make no sense, so why should the iPad story be different? Making money has been the traditional prime motive for entering politics since the days of the Socialist-Communist founders of the state. Why should Peres be different?
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from the article: Why has Israel banned the iPad?