Specifically, for its occupation of the West Bank:

Israel’s reputation as a vibrant democracy has been seriously tarnished by a new law intended to stifle outspoken critics of its occupation of the West Bank.

The law, approved in a 47-to-38 vote by Parliament, effectively bans any public call for a boycott — economic, cultural or academic — against Israel or its West Bank settlements, making such action a punishable offense. It would enable Israeli citizens to bring civil suits against people and organizations instigating such boycotts, and subject violators to monetary penalties.

Actually, boycotting a nation is a silly idea. But it's not as sillidiotic as laws trying bully people into silence.