Delhaize sues Serbia in international court over Margin Regulation – “We had to close 25 stores”

Ahold Delhaize, which owns numerous retail stores in Serbia and around the world, has requested arbitration before the international court in Washington (ICSID, Center for Settlements of Investments Disputes) over imposed margins in Serbia, Nova.rs reports.

This information was first published by the German Frankfurter Allgemeine Zeitung (FAZ).

As stated in the German daily, the company spent months in negotiations with the authorities in Serbia in order to find a common solution, but without success.

The Serbian Government’s decision under the regulation, as stated in the text, put the subsidiary Delhaize Serbia in a situation of operating at a loss, immediately after the adoption of the document.

The article states that Ahold Delhaize is best known in its home market for its Albert Heijn supermarket chain, and that Serbia is considered a significant market, although it accounts for less than five percent of the company’s European sales. The company is challenging in court a regulation adopted last September, when the Serbian government capped margins in 23 product categories for an initial period of six months.

It states that large retail chains are affected by the regulation, which applies to more than three-quarters of their product range, which accounts for more than four-fifths of their revenue. As it is pointed out, without these margin restrictions, retailers operated with net revenues of only two to four and a half percent.

The Frankfurter Allgemeine Zeitung article also states that Ahold Delhaize has allegedly closed 25 stores in Serbia since September. It also states that Delhaize Serbia has been operating for 25 years and now has 547 stores with more than 11,000 employees.

It is stated that, as a foreign investor in Serbia, Ahold Delhaize can pursue its claim for compensation not only through a potential lawsuit before a Serbian national court, but also through international arbitration. The basis for such claims are bilateral investment treaties or other international agreements. It is reminded that such an agreement existed between the Netherlands and the former Yugoslavia. After the collapse of the multi-ethnic state, the agreement was renegotiated between Serbia and the Netherlands and entered into force in 2004. It is reminded that, in addition, there is an agreement between EU member states and Belgrade, which has been in force since 2013.

The company says that the intervention of the Government of the Republic of Serbia is a “sudden and unprecedented state intervention in the retail market” and that it affects more than 85 percent of the income of Delhaize Serbia, RTS reported.

– Our company - the statement says - achieved a net profit margin of 4.4% in 2024, and only four months of implementing the Regulation in 2025 led to significant losses.

The company confirms that, in order to continue operating, they have so far “had to make the difficult decision” to close 25 stores and suspend investments planned for 2026, which led to “the loss of hundreds of jobs in Serbia.”

– We did not take this arbitral step lightly. This step follows months of intensive efforts to initiate a constructive dialogue with the Serbian authorities in order to identify balanced solutions that serve the interests of consumers, the economy and the long-term investment climate in Serbia. Despite these efforts, a solution has not been reached – Ahold Delhaize said in a statement.

Delhaize Serbia d.o.o. Beograd

Vlada Republike Srbije

Ahold Delhaize

ICSID

Center for Settlements of Investments Disputes

international court in Washington

trade margins

lawsuit

regulation

margin capping