The Effects Doctrine As a Basis for Extraterritorial Application of the Israeli Competition Law

The Effects Doctrine creates an important basis for extra-territorial application of local law. The Doctrine, which is part of international public law, broadens the application of local laws under some conditions to actions and individuals outside its territory, which have affected it. The Doctrine reflects the understanding that in our day and age acts performed in one jurisdiction can significantly affect another jurisdiction. Being part of public international law, the doctrine is automatically adopted into Israeli law, absent a clashing and clear legal prohibition. The application of the doctrine in competition law, and the conditions for its application are analyzed in this article. To do so, the article analyzes four types of conditions adopted around the world for its application, while emphasizing the vast changes that have occurred in its application in the last decade. The conditions chosen will affect the ability of Israeli citizens to be compensated for anti-competitive conduct that affects them, although it took place elsewhere. We suggest that its application be conditioned, in line with its current application in many jurisdictions, on significant potential effects, which is objectively foreseeable.