A renowned department store in Berlin has decided to return Israeli settlement products to its shelves after initially removing wine produced in the Golan Heights following a recent EU decision to label those products.

Following criticism both in Israel and Germany, KaDeWe, or Kaufhaus des Westens, on Sunday apologized the move and said in a letter : “The eight Israeli wines will be immediately returned. On this issue, dealt with following recommendations of the European Commission, we acted too fast and without sensitivity. We are sorry that the mistaken action of the KaDeWe Group lead to misunderstandings, and we want to apologize for that.”

The department store then went on to say that it carries a wide array of international products, including more than 200 Israeli products.

“The KaDeWe is a symbol of cosmopolitanism and internationalism, and we reject intolerance from any side,” the statement said.

Israeli Prime Minister Benjamin Netanyahu had earlier slammed the store’s ban as ‘’absurd’’ and ‘’morally and historically wrong.’’

"This department store was once owned by Jews. The Nazis took it. Absurdly, this department store is [removing] products from the settlements in Judea and Samaria and the Golan Heights," Netanyahu told the weekly cabinet meeting on Sunday.

"It started with labeling products, and now were are notified that these products have been removed - a boycott by all means," Netanyahu said.

"We protest stringently against this wrong step - wrong from a moral point of view, wrong from a factual point of view and wrong historically," he charged, adding he expected the German government to act against the move.

The European Commission on November 11 published an ‘’interpretative notice’’ with new guidelines explaining that fruit, vegetables and cosmetics from settlements in the West Bank and Golan Heights must not be labeled as produce from Israel but as products from Israeli settlements.