Dutch-Belgian retailer Ahold Delhaize has filed a request for international arbitration with the International Centre for Settlement of Investment Disputes (ICSID), based in Washington, challenging Serbia’s government-imposed cap on retail margins, the company said on Friday.
The arbitration was initiated under the bilateral investment treaty between the Netherlands and Serbia, Ahold Delhaize said in a statement sent to Radio Free Europe/Radio Liberty (RFE/RL).
Serbia introduced a 20% cap on retail margins on Sept. 1 as part of a package of economic measures aimed at improving living standards. The measures apply to the country’s four largest grocery chains – Delhaize, Mercator, Lidl and Univerexport.
Ahold Delhaize operates in Serbia through its subsidiary Delhaize Serbia, which employs more than 11,000 people and runs over 500 stores, making it the country’s largest private employer.
The company said the regulations include legally binding limits on retail margins, purchase prices and supplier fees, as well as new supplier veto rights over product listings and reductions in order volumes.
“This sudden and unprecedented state intervention in the retail market affects more than 85% of Delhaize Serbia’s revenues,” the company said.
Ahold Delhaize reported a net profit margin of 4.4% in Serbia in 2024, adding that just four months of applying the regulation in 2025 resulted in “significant losses”.
To continue operating, the company said it has closed 25 stores, suspended investments planned for 2026 and cut hundreds of jobs.
The retailer said the arbitration followed months of talks with Serbian authorities aimed at finding a solution that would protect consumers while maintaining a stable investment climate.
“Despite these efforts, no solution was reached,” the company said.
Delhaize Serbia continues to operate under loss-making conditions that materially affect the sustainability of its business and the value of its investment, Ahold Delhaize added.
Globally, Ahold Delhaize operates around 9,400 stores across three continents and employs nearly 400,000 people. The group was formed in 2016 through the merger of Belgium’s Delhaize Group and the Netherlands-based Ahold.
Ahold Delhaize entered the Serbian market in 2011, when Delhaize Group acquired local retailer Delta Maxi Group in a deal worth 932.5 million euros, including about 300 million euros in debt.
Serbia’s government, as well as its trade and finance ministries, did not immediately respond to requests for comment.