It depends on what motivates people from your network to give you an opportunity.
If their motivation is “I know that this guy is good for sure, I don't have to take chances with random people who answer the job as”, it is still merit based, and they're acting in the best interest of the company. However, they could also give a job to somebody they know just to have their favor, or to get more people into the company they they could rely on in internal politics. In this case, this is not based on merit, and they're effectively defrauding the company, acting against its interest.
Personally, I've mostly encountered first type of networking in USA and Northern Europe and mostly second type elsewhere. Israel is weirdly split between Hi-Tech and everything else, following first and second type respectively.