Electra sues China’s Huawei over breach of import contract
Electra Consumer Products, one of the largest importers of electronic goods in Israel, is taking on Huawei, the Chinese cellphone manufacturer.
Earlier this week, Electra filed a NIS 80 million lawsuit against Huawei after it claimed the Chinese company violated their agreement. Electra is the sole importer of Huawei cellphones in Israel. In 2016, it acquired 70% of ownership and control of Alpha Telecom, the importer and distributor of Huawei in Israel.
In a filing to the Tel Aviv Stock Exchange on Monday, Electra said Huawei “violated a partnership and distribution agreement” and conducted negotiations in “bad faith.”
Electra also asked the court to issue an injunction against Huawei to prevent it from using any information it obtained during its agreement with the Israeli company and to bar it from entering an agreement with a contractor in Israel to repair broken phones. This could adversely impact Huawei phone owners in Israel.
The lawsuit comes after Electra notified the TASE in February that it disagreed with Huawei about the sale goals for the phone in Israel.