Delhaize’s lawsuit against Serbia over margins – Arbitration tribunal formed, three law firms representing the country

While the effects of the regulation on trade margins that Serbia introduced last year as part of measures to curb inflation are still being debated, what emerged from the measure is undoubtedly an international arbitration initiated by Ahold Delhaize, the company that owns the Maxi chain of stores. Half a year after the company announced that it was initiating international arbitration over trade margin restrictions, a tribunal has been formed before the International Centre for Settlement of Investment Disputes (ICSID) to decide whether Serbia has violated the Bilateral Investment Treaty with the Netherlands.

The ICSID website states that the Tribunal was formed on August 4 this year in accordance with the provisions of the convention, and both parties agreed that Cavinder Bull, a lawyer from Singapore, would be the president. The member of the tribunal chosen by the initiator of the arbitration is American lawyer D. Brian King, while Serbia has appointed Jorge E. Vinuales, a Swiss-Argentine professor at Clare College, University of Cambridge, as a member.

Information on the arbitration also lists the legal teams that will represent the two parties in the arbitration. Ahold Delhaize will be represented by De Brauw Blackstone Westbroek, a law firm from Amsterdam. Serbia’s legal team is significantly larger and is led by the State Attorney's Office.

In addition to them, Serbia's arguments will be prepared by three law firms - Curtis, Mallet-Prevost, Colt & Mosle with offices in Italy, the USA and Hungary, the Mihaj, Ilic & Milanovic office from Belgrade and the Gecic law office from Brussels. In parallel, the Serbian team also includes professors from the University of Belgrade, Dusan Popovic and Marko Jovanovic.

According to the ICSID convention, decisions are made by majority vote, and they are only published if both parties to the arbitration agree.

Ahold Delhaize announced in early February that it had filed a request for arbitration to, as they pointed out, protect their rights under the Bilateral Investment Treaty between the Netherlands and Serbia, in connection with regulatory measures introduced by the Serbian Government in September 2025.

They stated that the Government’s decision to limit trade margins affected more than 85% of the company’s revenue, and that they were therefore forced to close 25 stores and suspend investments planned for 2026, which, they added, led to the loss of several hundred jobs in Serbia.

– These regulatory measures in Serbia include legal restrictions on retail margins, purchase prices and supplier fees, as well as the introduction of supplier veto rights to withdraw products from the assortment and reduce orders. This sudden and unprecedented state intervention in the retail market affects more than 85% of Delhaize Serbia’s revenue. The company achieved a net profit margin of 4.4% in 2024, while the implementation of the regulation for only four months in 2025 led to significant losses – the company stated.

Reacting to the then announcement of the initiation of arbitration, the Minister of Domestic and Foreign Trade Jagoda Lazarević emphasized that the news was expected and that Delhaize as an investor was not discriminated against.

– They announced it, but we did not want to give up on the regulation. We just want to know - why now? Why is arbitration initiated and a call for a BIT (Bilateral Investment Treaty) 20 days before the expiration of the regulation, and not earlier? The question is what is behind it. Since September, we have been suffering pressure and threats that arbitration will be initiated and we have resisted the pressure not to repeal the Regulation on Margin Limitation – said Minister Lazarevic at the time.

In an attempt to slow inflation, the Serbian government adopted a regulation at the end of August last year on limiting margins in retail chains, which limited the amount of margins to 20% on products from 23 categories.

Among the products for which margins were initially limited were milk and dairy products, eggs, soft drinks, tea, fresh fruits and vegetables, processed fruits and vegetables, bread and pastries, legumes, frozen products, fresh and processed meat, fresh and processed fish, salty confectionery, sweet confectionery and cereals, sugar and honey, flour and pasta.

The regulation has been amended several times, and ceased to be valid at the end of February this year.

Delhaize Serbia d.o.o. Beograd

Ahold Delhaize

Delhaize

Maxi

International Centre for Settlement of Investment Disputes

ICSID

Jagoda Lazarević

copping of trade margins

regulation on capping the trade margins

Delhaize law suit against Serbia