Israeli Defense Exports Get Antitrust Relief

Waiver will enable exporters to team up to bid on overseas contracts.

Ora Coren
Ora Coren
Send in e-mailSend in e-mail
An Israel Aerospace Industries Heron 1 UAV, on display at the Singapore Airshow, February, 2014.
An Israel Aerospace Industries Heron 1 UAV, on display at the Singapore Airshow, February, 2014.Credit: Bloomberg
Ora Coren
Ora Coren

The cutthroat competition among Israeli defense exports, particularly between state-owned Israel Aerospace Industries and publicly traded Elbit Systems, is due to end after the Antitrust Authority gave them a waiver to divide global markets among themselves.

Under the new rules, which were urged by the Defense Ministry and are scheduled to go into effect in 2015, defense companies will no longer have to get regulatory approval from a special antitrust court each time they present joint bids for projects overseas.

Each joint bid will assign one company the role as leader and one or more companies as sub-contractors.

The waiver, which is in force until 2019, according to the Antitrust Authority, includes not only manufacturing and marketing but also research and development, even when they are competing with each other in the Israeli market.

The waiver requires that the overseas operator doesn’t impinge on competition for Israeli defense contractors.

The new rules also put a ceiling on the size of joint bids, which can’t exceed 10% of the annual sales from the previous year of any one company involved. Likewise, R&D spending on a joint bid can’t exceed 10% of a company’s total R&D spending from the previous year.

Click the alert icon to follow topics:



Automatic approval of subscriber comments.
From $1 for the first month

Already signed up? LOG IN


Charles Lindbergh addressing an America First Committee rally on October 3, 1941.

Ken Burns’ Brilliant ‘The U.S. and the Holocaust’ Has Only One Problem

The projected rise in sea level on a beach in Haifa over the next 30 years.

Facing Rapid Rise in Sea Levels, Israel Could Lose Large Parts of Its Coastline by 2050

Prime Minister Yair Lapid, this month.

Lapid to Haaretz: ‘I Have Learned to Respect the Left’

“Dubi,” whose full name is secret in keeping with instructions from the Mossad.

The Mossad’s Fateful 48 Hours Before the Yom Kippur War

Tal Dilian.

As Israel Reins in Its Cyberarms Industry, an Ex-intel Officer Is Building a New Empire

Queen Elizabeth II, King Charles III and a British synagogue.

How the Queen’s Death Changes British Jewry’s Most Distinctive Prayer