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Analysis Group Responds to the Israel Competition Authority's Consultation on Draft Merger Guidelines
Competition economists from Analysis Group have responded to the Israel Competition Authority’s (ICA) call for input on its Draft Merger Guidelines (Draft Guidelines), published for public consultation on April 26, 2026. Managing Principal Samuel Weglein, Manager Zsolt Udvari, and Associate Gleb Gertsman welcomed the ICA’s expanded treatment of efficiencies, market power, and non-horizontal mergers, relative to its 2011 guidelines.
Running through the authors’ submission was a call for greater transparency regarding the analytical tools and economic evidence, both quantitative and qualitative, that the ICA applies in testing theories of harm – an approach, the authors noted, that has increasingly been reflected in international practice. The submission identifies a number of areas in which additional clarity would support a more transparent, predictable, and rigorous merger review process in Israel.
A more balanced view of startup acquisitions and conglomerate mergers
The authors recommended a more balanced assessment of both types of transactions, recognizing not only the potential competition concerns they can raise, such as “killer acquisitions” or foreclosure, but also the procompetitive benefits they can generate through innovation, commercialization, and the integration of complementary assets. Among other suggestions, they proposed that the ICA more explicitly acknowledge the potential procompetitive benefits of acquisitions involving innovative startups. As one possible mechanism, the ICA could consider adopting an “innovation shield” (similar to a concept in the Draft EU Merger Guidelines) to provide greater predictability for acquisitions of small, innovative companies.
Strengthening the treatment of efficiencies
The authors also urged the ICA to strengthen its treatment of merger-specific efficiencies and benefits by encouraging early engagement on efficiencies, recognizing dynamic and innovation-related efficiencies alongside short-term cost savings, and drawing on recent international developments such as the EU’s “theory of benefit” framework.
Practical refinements to market power analysis
On market power, the authors called for clearer guidance on non-price competition, the role of potential entry and expansion by rivals, the interpretation of the revised structural presumption thresholds, and a less rigid treatment of imports for a small, open economy like Israel’s.
Associated People
Zsolt Udvari
ManagerDr. Udvari specializes in applying economic theory and econometrics to antitrust and litigation matters. His expertise lies particularly in assessing abuse of dominance within the digital domain using both established and novel economic theories and empirical analyses. He also has experience in merger assessment, litigation, and state aid matters. Beyond the digital sector, Dr. Udvari’s industry insights extend to retail fuel, telecommunications, chemicals, card payment systems, airlines, and various other sectors. His experience includes high-profile cases before the European Commission such as the MOL/OMV Slovenija Phase II merger and Slack’s complaint against Microsoft Teams. Prior to joining Analysis Group, Dr. Udvari worked for a Brussels-based economic consultancy and was a postdoctoral researcher and lecturer at the Université Libre de Bruxelles.