Serbian companies face competition risk as distribution-rule transition ends

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Serbian companies using distribution, dealership, franchise and exclusive-supply agreements face increased competition-law exposure after a six-month transition period for aligning existing contracts with new vertical agreement rules expired on Sept. 28.

The regulation, in force since March 28, 2026, replaced Serbia’s previous block-exemption framework and changed the conditions under which agreements between suppliers, distributors and retailers can benefit from an automatic exemption from rules banning restrictive agreements.

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Existing contracts had six months to comply.

The expiry means agreements that fall outside the new conditions can no longer rely automatically on the block exemption. They are not necessarily unlawful, but restrictive clauses must instead be assessed under Serbia’s broader competition rules.

The change affects manufacturers, distributors, dealers, franchise networks, retailers and foreign groups operating through Serbian subsidiaries or local commercial partners.

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Companies should focus particularly on clauses covering resale pricing, customer and territorial restrictions, online sales, exclusivity, non-compete obligations and selective distribution.

Resale price maintenance remains a key risk. Suppliers may generally recommend resale prices or impose maximum prices, but arrangements that effectively establish fixed or minimum resale prices can breach competition rules.

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Restrictions on territories and customers also require scrutiny, particularly where distributors are prevented from responding to unsolicited orders or where contractual terms materially limit online sales.

The deadline raises the importance of reviewing not only written agreements but also commercial practice.

Dealer instructions, discount policies, monitoring of resale prices and informal pressure over customer allocation can create competition risks even where formal contracts appear compliant.

The rules are particularly relevant to sectors such as automotive distribution, consumer goods, pharmaceuticals, industrial equipment, electronics, retail and franchising, where multi-layered distributor and dealer networks are common.

Foreign investors should also review regional contract templates used in Serbia rather than assume that agreements structured for other European markets automatically satisfy Serbian requirements.

Competition compliance may increasingly become part of due diligence in acquisitions and financing transactions, particularly where a target company relies heavily on exclusive distribution or long-term dealer arrangements.

For Serbian companies, the Sept. 28 deadline shifts the issue from transition planning to current compliance.

Legacy agreements that have not yet been reviewed now carry a more immediate regulatory risk, making distribution contracts and related commercial practices a priority for legal and management teams.

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