Israeli Jurisdiction Over Foreign Companies: Lessons from the Biggest Class Actions of the Past Year
Adv. Samuel Even
Israeli Jurisdiction Over Foreign Companies: Lessons from the Biggest Class Actions of the Past Year
The bottom line: Israel has become an active and aggressive arena for class action lawsuits against multinational corporations. Google paid NIS 46.5 million in a settlement. Meta paid NIS 9 million across two separate settlements. El Al faces a record NIS 121 million fine alongside a parallel class action. The message is clear: even a global tech giant is not immune from Israeli courts.
If you’re a business harmed by a foreign corporation’s conduct — or a corporation operating in Israel — you need to understand the new rules of the game.
Why Israel Became a Class Action Powerhouse
Three factors turned Israel into a global hub:
The Class Action Law (2006) — a progressive law enabling a single individual to represent millions of affected consumers. The scope is broad: consumer protection, antitrust, securities, discrimination, environment, banking, insurance, and more.
Amendment 13 to the Privacy Protection Law — effective August 2025, allowing damages of up to NIS 10,000 per violation without proving harm. This is a powerful new engine for privacy-based class actions.
Globalization of litigation — Israeli lawyers collaborate with international counterparts, and AI technologies help automatically detect corporate violations.
5 Landmark Cases Reshaping the Landscape
1. Google — NIS 46.5 Million: Auto-Renewing Subscriptions
A single Israeli user sued Google, claiming Google Play failed to properly disclose that app subscriptions auto-renew — violating Israel’s Consumer Protection Law. The suit was certified as a class action, and Google paid NIS 46.5 million to users who paid annual subscriptions between 2010-2022. Google also revised its contractual terms for Israeli users.
The lesson: A foreign company selling digital products to Israelis is subject to Israeli consumer protection law — even if it’s headquartered in California.
2. Google & Meta — The Advertising Duopoly Lawsuit
A class action filed in the Central District Court alleged that Google granted Meta preferential treatment on its advertising platforms, and in return Meta abandoned its plan to develop competing ad technology. The claim: a restrictive arrangement violating competition law that harms Israeli consumers.
The lesson: Israeli antitrust law applies to foreign companies operating in the Israeli market — even if the arrangement was executed abroad.
3. Meta — NIS 9 Million: Sharing Private Data Without Consent
Two separate class actions against Meta ended in settlements: NIS 5 million for sharing user data with third parties, and NIS 4 million for monitoring private messages. Meta didn’t admit liability but paid to the Class Action Fund.
The lesson: Even a “settlement without admission” is a significant outcome. The very filing of the lawsuit forces companies to change their policies.
4. El Al — Record NIS 121 Million Fine + Class Action
Israel’s Competition Authority announced its intent to impose a record fine on El Al for allegedly charging excessive prices during the war. Simultaneously, a class action was filed on the same grounds. The District Court rejected El Al’s request to stay the civil proceedings — ruling that the civil enforcement track is independent.
The lesson: A company can face dual enforcement — an administrative fine and a class action — for the same violation.
5. Google — Lawsuit Over Gemini AI Surveillance
A class action was filed against Google alleging it activated its Gemini AI system for all Gmail, Chat, and Meet users without their consent, enabling monitoring of private communications. The lawsuit is grounded in privacy claims — a field dramatically strengthened by Amendment 13.
The lesson: Artificial intelligence and intellectual property are the next frontier of class action litigation.
Jurisdiction: How Does an Israeli Court Sue an American Company?
The central question businesses ask: how can you even sue a company with no offices in Israel?
The answer rests on several principles:
The “center of gravity” test — if the harm occurred in Israel, to Israeli users, through a service directed at the Israeli market — jurisdiction exists.
The Consumer Protection Law — applies to any “business” selling products or services to Israeli consumers, regardless of the company’s physical location.
The Privacy Protection Law — applies to any entity processing personal data of Israelis, anywhere in the world.
The Antitrust Law — applies to any arrangement affecting competition in the Israeli market.
The practical implication: Tech companies operating a Hebrew-language website, collecting data on Israelis, or selling products in Israel are subject to Israeli law and can be sued in Israeli courts.
What This Means for Businesses
If You’re a Consumer or Business That’s Been Harmed
You have tools. A class action lets you fight corporate giants even without a legal budget — the attorney bears the risk and receives fees only upon success. But it’s important to know: not every case qualifies. You need to demonstrate a personal cause of action, common questions for the group, and a reasonable chance of success.
If You’re a Company Operating in Israel
The risk is growing. Amendment 13, consumer protection law, and competition law all expand exposure to class actions. Proposed Amendment 16 to the Class Action Law may change screening rules, but the trend is clear: more lawsuits, more enforcement, more damages.
If You’re a Multinational Selling in Israel
Don’t ignore Israeli law. Google, Meta, and Apple have already learned — and paid. Ensure your terms of service, privacy policy, and marketing practices comply with Israeli legal requirements.
Practical Guide: 5 Steps for Dealing with Class Actions
Step 1: Conduct a Preemptive Compliance Review
Check whether company practices meet consumer protection law, privacy law (including Amendment 13), and antitrust law. It’s better to find a problem before someone else does.
Step 2: Update Terms of Service and Privacy Policies
Ensure they’re clear, transparent, and meet Israeli standards — even if the company is registered abroad.
Step 3: Prepare a Litigation Response Plan
A class action demands a swift, professional response. Delay can lead to certification by default.
Step 4: Consider Early Settlement — If Appropriate
Early settlement saves years of litigation, limits exposure, and allows control over the outcome. In most major cases — like Google and Meta — the parties reached settlements.
Step 5: Consult a Specialist Attorney
Class actions are a specialized and complex field. Decisions in the early stages determine the outcome of the entire proceeding.
How Our Firm Can Help
Samuel Even & Co. Advocates assists businesses and companies in the class action arena, including:
- Plaintiff representation — filing class action certification requests in consumer protection, privacy, and competition matters
- Defendant representation — defense against class actions, including the certification stage, case management, and settlement negotiations
- Preemptive advisory — compliance reviews, exposure identification, and remediation before they become grounds for a lawsuit
- Commercial litigation — representation in disputes against multinational corporations in Israeli courts
Think you’ve been harmed? Or worried about a class action? Contact us for an initial consultation.
03-6348020 | [email protected]