The Serbian competition landscape has undergone a profound transformation. While the Commission for Protection of Competition (CPC) has always had legal authority, its enforcement strategy has evolved from a largely reactive stance, responding to specific complaints, to a more proactive one, systematically addressing competition issues in key markets. This fundamental shift from procedural to strategic enforcement is reshaping how businesses must approach compliance in Serbia.
Historically, the CPC’s work was often procedural, with investigations typically triggered by a formal complaint from a competitor. This made competition risks for many companies feel remote, allowing for practices that might have gone unnoticed. However, recent, high-profile cases demonstrate a new, more assertive approach. In 2024, the CPC launched a significant investigation into several of Serbia’s major supermarket chains, suspecting price coordination through information exchange. This was not a response to a single complaint but a deliberate action targeting an industry with immense public and political visibility. The case made national headlines and served as a wake-up call for the entire retail sector.
This shift is not confined to one sector. In 2024, the CPC also fined two leading coffee producers for coordinating pricing policies. This case, like the retail investigation, shows the CPC is now using its powers in consumer-facing markets where pricing matters directly to the public. These actions are a clear sign that the authority is actively seeking out and addressing competition issues, and they’re willing to pursue major national and international brands alike.
Systemic Change and a New Enforcement Toolkit
The most significant evidence of this proactive transition lies in the CPC’s use of sector inquiries. These inquiries allow the CPC to systematically analyze a market without a prior complaint, collecting data to identify potential anticompetitive behavior. For example, the CPC’s inquiry into the retail sector provided the data that directly led to the recent cartel investigation, proving that these studies are a strategic prelude to enforcement. The CPC has also initiated inquiries into other sectors, such as private healthcare and pharmaceuticals, confirming this shift to a more deliberate, data-driven approach to market oversight.
Furthermore, the CPC is taking a more aggressive stance on merger control, particularly regarding “gun-jumping,” which is the practice of companies beginning integration before receiving regulatory approval. The CPC is no longer just a passive reviewer of merger filings; it is actively investigating violations of a rule that was once rarely enforced, signaling that procedural compliance is now a major enforcement priority.
Despite these changes, challenges remain. The CPC still operates with fewer resources than its European counterparts, and judicial reviews of its decisions can sometimes be protracted, which may reduce their deterrent effect and prolong business uncertainty. This is often exacerbated by the high-profile nature of the cases, which can introduce additional political pressure into the legal process. Moreover, the leniency program, designed to encourage firms to report cartel activity, has had limited uptake. Consequently, some companies may still view competition law as a box to check, but this is a dangerous assumption given the new regulatory landscape.
The New Rules of Engagement
Looking ahead, the CPC’s proactive approach is likely to continue. We can expect more cartel cases and enforcement actions in politically sensitive, consumer-facing markets where prices have a direct impact on the public. The Commission is also expected to adopt more sophisticated investigative tools, including digital forensics, to uncover concealed communications.
For businesses, the new reality is clear: the rules of engagement have changed. Practices once considered routine, such as informal information sharing with competitors or beginning a merger prematurely, now carry significant legal risks. The onus is no longer just on the CPC to react to market complaints. Companies must now be proactive in their own compliance efforts to navigate the new, assertive era of competition enforcement in Serbia. The businesses that will succeed are those that embrace this shift and make proactive legal compliance a core part of their operational strategy.
By Stefan Savic, Head of Competition, NKO Partners
This article was originally published in Issue 12.9 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
