Serbia’s Commission for Protection of Competition has issued the first two instructions implementing the Law on Trading Practices for Certain Types of Products (Official Gazette of RS No. 35/2026). The Instruction on Unfair Trading Practices was adopted on 25 June 2026 and entered into force on 4 July 2026. The Instruction on Significant Bargaining Power followed on 10 July 2026, entering into force on 18 July 2026.
For companies buying from or supplying into Serbia’s food, agricultural and essential consumer goods chains, these instructions are the first concrete indication of how the Commission intends to interpret and enforce the new regime. Compliance has moved from a question of principle to one that can be tested against specific criteria.
The Trading Practices Law in brief
The Law entered into application on 1 May 2026 and establishes Serbia’s first systematic framework addressing unfair trading practices between suppliers and buyers. It follows the logic of Directive (EU) 2019/633 on unfair trading practices in the agricultural and food supply chain, but goes beyond the EU minimum in several respects.
Four features matter most for foreign companies:
- Broader product scope. Beyond agricultural and food products, the Law covers inputs used in agricultural production and a range of goods of particular importance for market supply, including household chemicals, hygiene products and cosmetics.
- Applies regardless of governing law. The Law applies to relationships between suppliers and buyers trading within the territory of Serbia, irrespective of the law the parties have chosen for their contract. A contract governed by German, Austrian or English law does not sit outside the regime.
- Applies at every stage. An unfair trading practice may arise before, during or after a sale, and regardless of whether a written contract exists.
- Enforced by the Competition Commission. The Commission conducts proceedings to establish unfair trading practices and imposes measures.
The Instruction on Unfair Trading Practices
This instruction sets out how the Commission will assess whether conduct falls within the black list of always-prohibited practices under Article 6, or the grey list of conditionally prohibited practices under Article 7.
Black list: absolute prohibitions
The instruction elaborates the scope of the absolute prohibitions, which include:
- exceeding statutory payment deadlines
- unilateral amendments to contractual terms
- late cancellation of orders for perishable products
- unjustified charges imposed on suppliers
- misuse of a supplier’s trade secrets
Payment terms are the most common source of non-compliance in practice: 30 days for perishable agricultural and food products, 60 days for other agricultural and food products. Invoicing and payment approval workflows need to meet these deadlines systematically, not case by case. Where a group operates shared service centres or centralised treasury functions abroad, internal processing time is not an excuse the Law recognises.
Grey list: conditionally permitted practices
The instruction explains when certain grey-list practices may exceptionally be permitted, and the criteria the Commission will apply. These cover, among other things, the conditions for charging suppliers various fees, the return of unsold products, reductions in order volumes, termination of commercial relationships, non-cash payment, retroactive charges, and the allocation of regulatory fines and other business costs to suppliers.
The common requirement is formality. For a grey-list practice to be permissible, it must be clearly and unambiguously agreed in advance and in writing. Established course of dealing and verbal understandings do not satisfy this standard, which is a significant shift for companies whose Serbian commercial relationships have developed informally over years.
The prohibition on commercial retaliation
A dedicated section addresses commercial retaliation. Any act of retaliation, or threat of retaliation, against a supplier for exercising its contractual or statutory rights constitutes an unfair trading practice. The instruction provides practical examples and sets out the factors the Commission will weigh in determining whether retaliation has occurred.
This carries the highest operational risk, because retaliation is rarely executed through a formal decision. It surfaces in ordinary commercial choices — listing decisions, shelf positioning, order volumes, responsiveness in communication. Documenting the commercial rationale for decisions affecting a supplier who has raised a complaint is therefore essential, and it needs to happen contemporaneously rather than reconstructed later.
The Instruction on Significant Bargaining Power
Significant bargaining power is the ability of one contracting party to impose its terms on the other as a result of an imbalance in their economic positions. It functions as the gateway to the regime: without significant bargaining power on the buyer’s side, the prohibitions are not triggered.
Turnover-based presumptions
The Law establishes five presumptions based on the relationship between annual turnover figures. A buyer is presumed to hold significant bargaining power, unless it proves otherwise, where:
- the supplier’s total annual turnover does not exceed EUR 2 million and the buyer’s exceeds EUR 2 million
- the supplier’s turnover is between EUR 2 million and EUR 10 million and the buyer’s exceeds EUR 10 million
- the supplier’s turnover exceeds EUR 10 million but not EUR 50 million, and the buyer’s exceeds EUR 50 million
- the supplier’s turnover is between EUR 50 million and EUR 150 million and the buyer’s exceeds EUR 150 million
- the supplier’s turnover is between EUR 150 million and EUR 350 million and the buyer’s exceeds EUR 350 million
The instruction clarifies how annual turnover is calculated — particularly relevant for companies operating through groups of related entities or participating in buying alliances, where the figure attributable to a single legal entity may understate the relevant position.
Where the presumptions are not met
Significant bargaining power may exist outside these thresholds where the supplier demonstrates it. The instruction identifies indicators the Commission may take into account, including:
- geographic and time-related constraints in the supply chain
- technological and commercial constraints
- the practical inability to establish an alternative business relationship with another buyer in the short term
- unjustified delays in negotiations
The Commission may also consider the parties’ negotiation history, the existence and balance of a written contract, and their conduct in resolving disputes.
The practical consequence is that falling below the turnover thresholds is not a standalone defence. A buyer relying solely on that argument is exposed, because the assessment shifts to the substantive characteristics of the relationship.
What companies should do now
The instructions provide a workable framework for self-assessment. Priority areas:
- Payment terms. Verify that contractual deadlines and internal invoicing procedures comply with the 30-day and 60-day statutory deadlines, including the treatment of disputed invoices.
- Commercial arrangements. Review provisions on order volumes, cancellations, termination rights and non-cash payment mechanisms against the conditions set out in the instruction.
- Contract management. Ensure amendments to key commercial terms are documented and based on mutual agreement rather than unilateral implementation.
- Internal compliance processes. Review policies and account management practices to reduce the risk of conduct that could be characterised as commercial retaliation.
- Bargaining power assessment. Compare annual turnover figures, group and buying-alliance structures, and commercial relationships against the statutory thresholds and the instruction’s indicators.
For international groups, template agreements and general terms and conditions drafted for other markets are the most likely point of failure. Provisions that are unremarkable elsewhere in Europe — extended payment windows, unilateral amendment clauses, cost pass-through mechanisms — may fall directly within the black list as applied in Serbia.
What comes next
These instructions are the first step in implementing the new regime. The Law also requires the Commission to adopt instructions regulating the form and content of initiatives for commencing proceedings, and the treatment and protection of confidential information in proceedings before the Commission.
For companies in the supply chain, the period before the remaining instructions are adopted is an opportunity for internal review without the pressure of an ongoing proceeding. Enforcement practice will take shape over the coming months, and early cases tend to set interpretive standards that are difficult to shift afterwards.
Frequently asked questions
Which products does the Law cover?
Agricultural and food products, inputs used in agricultural production, and goods of particular importance for market supply, including hygiene products and household chemicals.
Does the Law apply if the contract is governed by foreign law?
Yes. It applies to relationships between suppliers and buyers trading within the territory of Serbia, regardless of the governing law chosen by the parties.
Can significant bargaining power exist if the turnover thresholds are not met?
Yes. A supplier may demonstrate significant bargaining power on the basis of other circumstances, such as dependence on the buyer or the absence of an alternative commercial partner in the short term.
What counts as commercial retaliation?
Any act or threat of retaliation against a supplier for exercising its contractual or statutory rights. This may include reduced orders, delisting, or worsened commercial terms in response to a supplier complaint.
Are further implementing rules expected?
Yes. The Commission is required to adopt further instructions on procedural matters and the protection of confidential information in proceedings.
Get in touch
If your business purchases or supplies agricultural, food or essential consumer goods in Serbia, reviewing contractual documentation and internal procedures against the new instructions is a sensible next step.
The information contained in this document does not constitute legal advice regarding any specific matter and is provided for general informational purposes only.
