Inter-Up has been declared a monopolist in the elevator service industry in Israel

The decision was made following an audit that found that Inter-Up’s share in the maintenance of modern Mitsubishi elevators in residential buildings is almost 100%.

The company, in its response to the regulator, referred to a 2009 court decision, according to which Inter-Up is not a monopolist, in particular because it sells and services elevators of only one brand. The antimonopoly department considers the analysis carried out in that decision to be erroneous.

The decision concerns modern MRL type elevators imported to Israel in the form of kits from a foreign manufacturer. Their installation became very common more than ten years ago in new residential buildings. The type of elevator to be installed in a building is usually chosen by the developer, but long-term maintenance costs are borne by the apartment owners themselves.

The department emphasizes that maintenance of elevators in residential buildings is necessary to ensure their safety, serviceability and operation. Accordingly, apartment owners are obligated, both financially and legally, to enter into an agreement with a company that provides elevator maintenance and repair services.

Servicing modern elevators of this type requires access to specific equipment, software, original manufacturer spare parts, as well as special knowledge. These circumstances provide a built-in advantage to the company that originally installed the elevators and make it difficult for competitors to enter the service market.