Serbian companies operating through distribution, dealership, franchise and exclusive-supply arrangements face a new compliance stage after the six-month transition period for existing vertical agreements expired.
The new framework has been in force, replacing Serbia’s previous block-exemption regime for vertical agreements. The rules changed the conditions under which agreements between suppliers, distributors and retailers can qualify for an automatic exemption from the prohibition of restrictive agreements. Companies with existing contracts were given six months to bring their arrangements into line with the new requirements.
Existing agreements require competition-law assessment
The end of the transition period means contracts that do not meet the new block-exemption conditions can no longer rely automatically on that exemption. Such agreements are not necessarily unlawful. However, restrictive provisions must instead be assessed under Serbia’s wider competition rules. The changes apply across commercial structures involving manufacturers, distributors, dealers, franchise networks, retailers and foreign groups operating through Serbian subsidiaries or local commercial partners. Particular attention is required for provisions concerning resale pricing, territorial and customer restrictions, online sales, exclusivity, non-compete obligations and selective distribution.
Resale prices and sales restrictions remain key areas
Resale price maintenance represents one of the main areas requiring review. Suppliers can generally recommend resale prices or establish maximum prices, while arrangements that effectively impose fixed or minimum resale prices may breach competition rules. Contractual restrictions on territories and customers also require examination. This is particularly relevant where distributors are prevented from responding to unsolicited orders or where contractual provisions substantially restrict online sales.
The compliance review extends beyond the wording of contracts to the way distribution arrangements operate in practice. Dealer instructions, discount policies, resale-price monitoring and informal pressure concerning customer allocation can create competition-law risks even when the underlying written agreements appear compliant.
Impact across distribution-heavy sectors
The revised framework is relevant to industries with extensive distributor and dealer networks, including automotive distribution, consumer goods, pharmaceuticals, industrial equipment, electronics, retail and franchising. Foreign investors and international groups operating in Serbia also need to examine regional contract templates used for the Serbian market rather than assuming that agreements designed for other European jurisdictions automatically meet Serbian requirements.
Competition compliance can also become part of due diligence for acquisitions and financing transactions, particularly when a company depends significantly on exclusive distribution arrangements or long-term dealer contracts. For Serbian companies, deadline marks the end of the transition phase and the beginning of the new compliance period. Existing distribution agreements that have not been reviewed remain subject to assessment under the applicable competition rules, alongside the commercial practices through which those agreements are implemented.
