The Dutch-Belgian retail giant Ahold Delhaize (Delhaize) has filed a request for arbitration with the International Centre for Settlement of Investment Disputes (ICSID), challenging Serbia’s government-imposed 20% margin cap introduced last September.
In a statement sent to Radio Free Europe (RFE) on February 6, Ahold Delhaize said the arbitration seeks to protect the company’s rights under the bilateral investment treaty between the Netherlands and Serbia. The arbitration proceedings will take place at ICSID’s headquarters in Washington, D.C., United States.
Ahold Delhaize operates in Serbia through its local subsidiary, Delhaize Serbia, and is the country’s largest private employer, with over 11,000 employees and more than 500 stores. Globally, Ahold Delhaize ranks among the largest retail groups in the world, following the 2016 merger of Belgium’s Delhaize and the Netherlands’ Ahold.
The Serbian government’s September 1 decree limited retail margins to 20% as part of a package of economic measures aimed at “improving citizens’ living standards”, targeting four major retail chains: Delhaize, Merkator, Lidl, and Univerexport.
By definition, a margin is the difference between a product’s wholesale and retail price. Ahold Delhaize noted that the new regulation also introduced caps on retail and supplier prices, restrictions on supplier fees, the right of suppliers to veto product listings, and limits on order quantities.
“This sudden and unprecedented state intervention in the retail market affects more than 85% of Delhaize Serbia’s revenue. Our company recorded a net profit margin of 4.4% in 2024, but just four months under the new regulation in 2025 have resulted in substantial losses,” the company said.
To continue operations, Delhaize Serbia has reportedly closed 25 stores and halted planned investments for 2026, resulting in the loss of hundreds of jobs.
Ahold Delhaize emphasized that the arbitration follows months of dialogue with Serbian authorities to find a solution balancing the interests of consumers, businesses, and Serbia’s long-term investment climate. “Despite these efforts, no agreement was reached,” the company said.
The firm also noted that Delhaize Serbia continues to operate under loss-making conditions, which materially affect both the sustainability of its operations and the value of its investment in the country.
Globally, Ahold Delhaize operates across three continents, manages approximately 9,400 stores, and employs nearly 400,000 people worldwide. The company entered the Serbian market in 2011 when Delhaize Group acquired the domestic Delta Maxi Group for €932.5 million, including approximately €300 million in debt.
At the time of publication, Serbian government officials, the Ministry of Trade, and the Ministry of Finance had not provided an official response to Ahold Delhaize’s arbitration request.
