Antitrust Commissioner Dror Strum is checking whether agreements between insurance firms and the Shagrir roadside-assistance services company hinder competition and thus violate the Antitrust Law.
Allegedly, eight insurance companies - Clal, Sahar, Menora, Hachsharat Hayishuv, Phoenix, Hadar, Israel Direct Insurance and Eliyahu - have forced clients to use Shagrir. These companies control 70 percent of the auto-insurance industry.
Until a year ago, the agreements between these companies and Shagrir granted the latter exclusivity. The Antitrust Authority then established that this arrangement violated the law and demanded that the exclusivity clause be deleted.
A recent review of the revised documents has revealed that although the term "exclusivity" has been scrapped, it was stipulated instead that if the insurance company works with any other service provider, Shagrir's prices will be renegotiated.
Shagrir is owned in equal parts by Phoenix, Clal Insurance and the Delek Group.
A few weeks ago, the insurance companies and Shagrir received a letter from Strum asking for explanations. Next, the commissioner intends to hold a hearing.
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