Landau to become a private hechsher

I am not quite sure how this works and maybe one of the readers here can explain better and enlighten me.

The Rabbanut has disqualified Rabbi Landau in Bnei Braq from giving the hechsher under the kashrut organization of the Landau kashrut. The disqualification means that the Landau hechsher can no longer be considered a Rabbanut hechsher and cannot give the official kashrut from the State to food establishments and manufacturers. They can continue to do so as a private hechsher, but like any other private hechsher they cannot use the word "kosher" and would have to have a Rabbanut kashrut certification on any establishment under their authority.

I don't really understand the reason, but from what I gather the Rabbanut has decided that the Landau hechsher acts too much like a private hechsher to act as a Rabbanut State hechsher - by giving certification to products and constitutions outside of Bnei Braq, and even outside of Israel along with shochtim who work abroad and import meat to Israel...

Perhaps the biggest ramification of this is that the Landau hechsher will no longer be funded by the State via the City of Bnei Braq and will have to survive on its own merits and with a real business model.
sources: Behadrei, Kikar

I don't know if this will be good or bad for them, or for the Rabbanut. The Landau hechsher is one of the most highly respected kashrus organizations and is very well accepted even among the most strict and exclusive people and groups. I expect that they should be able to survive, and even thrive, as a private hechsher, but they will have to develop a business model to succeed, and this is something they have never had to do before as the funding was always there from the State propping them up.

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