JERUSALEM: Israel's prime minister is accusing a German department store of a “boycott” after it removed products made in Israeli settlements under new European Union labeling guidelines.

Benjamin Netanyahu noted Sunday that Berlin's KaDeWe department store was once owned by Jews before the Nazis seized it. He says its decision to label products from Israeli communities and remove them from its shelves is “a boycott in every respect. “

Netanyahu said it was morally and historically unacceptable and called on the German government, which opposed the product labeling, to act on the matter.

The EU decision to begin labeling products originating in the settlements has infuriated Israel, which says the move is unfair and discriminatory, and has linked it to a growing international boycott movement.

Related: EU issues guidelines for labelling goods made in Israeli settlements