Safeway Charged Over Boycott

The Commerce Department charged Safeway Stores Inc. today with $3.5 million worth of civil violations, accusing the grocery giant of joining an Arab-led boycott of Israeli products.

Government officials said the potential Safeway fines are 10 times larger than the biggest penalties they have ever imposed. The 320 charges against Safeway accuse company managers in Saudi Arabia and Kuwait of refusing to do business with potential suppliers from Israel and with telling others about their company’s business relationships with Israeli firms. Arab nations have boycotted Israeli goods for more than 30 years.