Papovic: Only Delhaize objected to the restriction of trade margins

The President of the National Organization for Consumer Protection of Serbia (NOPS), Goran Papovic, said today that the only one protesting about the restriction of trade margins was the retail chain Delhaize, and that until then, as he stated, it had behaved arrogantly in its business operations in Serbia.

He told Beta that NOPS had warned about the level of margins in that retail store.

– The bilateral agreement between Serbia and the Netherlands does not stipulate that that retail store can charge margins arrogantly, at its discretion, to the exclusion of competition. The agreement states that competition must be respected, and limiting margins is not discrimination – said Papovic.

Arbitration in Washington

Ahold Delhaize, which owns numerous retail stores in Serbia and around the world, will seek arbitration before the international court of justice in Washington (ICSID, Center for Settlements of Investments Disputes) over “imposed” margins in Serbia.

The Serbian government, by issuing a regulation on margin limits for 20,000 products effective September 1, 2025, limited margins for six months, to a maximum of 20%, which is why the company, as it stated, is operating at a loss.

Papovic stressed that Delhaize jeopardized competition because it was both a distributor and a trader, had a “closed” supplier structure, and supplied meat, agricultural products, and fruit.

– Where is the competition here? The Commission for the Protection of Competition is to blame for the lack of it – Papovic stressed.

According to him, the Commission can also see the structure of owners and suppliers at Delhaize, but it only announces, as he stated, the re-election of directors.

– The Commission for the Protection of Competition is a state within a state. No one manages to communicate with it – said Papovic, emphasizing that the market and agricultural inspection should control the situation on the market and determine “whether something called cheese is really cheese and whether it is made from milk or palm oil.”

According to him, Delhaize has found good advisors who noticed loopholes in the laws.

Is Delhaize “stronger than the state?”

Papovic said that the retail chain wanted to “intimidate with a lawsuit, to show that it is stronger than the state.”

– Maxi stores should be boycotted and let’s see who wins – said Papovic.

Delhaize has been operating in Serbia for 25 years and has 547 stores with more than 11,000 employees.

Some media outlets reported that the company, as a foreign investor in Serbia, could pursue its claim for compensation for damages, 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, one such existed between the Netherlands and the former Yugoslavia, and after the collapse of Yugoslavia, the agreement was renegotiated between Serbia and the Netherlands and entered into force in 2004.

It is reminded that, in addition, there is also an agreement between EU member states and Belgrade, which has been in force since 2013.

Nacionalna organizacija potrošača Srbije NOPS

Komisija za zaštitu konkurencije Srbije

Delhaize Serbia d.o.o. Beograd

National Organization for Consumer Protection of Serbia

NOPS

Delhaize

Ahold Delhaize

ICSID

Center for Settlements of Investments Disputes

Commission for the Protection of Competition

Goran Papović

trade margins