13 November, 2001

PALTEL sues Israeli operators for damages

The Palestine Telecommunications Company, PALTEL, is suing Israeli cellular operators, Pele-phone and Cellcom, for the illegal infringement on its market and encroachment on the exclusivity rights of it's "daughter" company, Palestine Cellular Communications, Ltd, JAWWAL.

After having exhausted all other avenues, including dialogue, negotiations and legal overtures outside the courts of law, PALTEL was left with no other choice but to seek redress in the Palestinian courts against the illegal encroachment on its market and the obstruction of the law by Pele-phone and Cellcom. PALTEL seeks to stop the violations and breaches as well as damages.

This is the first ever legal action brought by a Palestinian business concern against Israeli businesses who have violated the Palestinian telecommunications law and other commercial regulations.

The legal representatives of PALTEL have based their action on the premise that Pele-phone and Cellcom peddled their products in the Palestinian market, ignoring PALTEL's exclusive license, without obtaining the requisite authorization.. These actions amount to unjust enrichment.

Pele-phone and Cellcom have been enriched as a result of this unfair competition and by abusing their natural proximity to the detriment of PALTEL's exclusivity.

It is necessary to stress that this legal action is not related to current political events in any way. This case pertains to illegal practices of these two Israeli operators whose actions have injured the Palestinian private and public sector.

The charges against Pele phone and Cellcom include:

· Violation of article 36 of the Oslo Accords,
· Violation of paragraph 5 of article 3 of the Palestinian Postal and   Telecommunications Law,
· Illegal enrichment,
· Unfair competition.