North Macedonia: CPC issues fines in food retail sector, cartel decision in insurance market

Antitrust fines following investigations in the food retail sector

On the antitrust front, following a dawn raid into suspected coordinated behaviour earlier this year, the CPC imposed misdemeanour fines totalling EUR 219,000 on four retail companies operating in the food products market, as well as on the Chamber of Commerce of North Macedonia, which was found to have played a coordinating role.

Alongside its antitrust enforcement, the CPC has stepped up action under the Unfair Trading Practices Act, initiating proceedings against major supermarket chains and issuing fines to 30 companies. These fines are currently being challenged before the Administrative Court amid growing complaints from suppliers.

Price coordination through an industry association

According to the CPC's findings, at a meeting held on 5 February 2025, the four retail companies and the Chamber of Commerce reached a coordinated position not to accept new or increased price lists from suppliers. This conduct was found to have replaced independent market decision-making with practical coordination among competitors.

The CPC concluded that the behaviour amounted to a prohibited agreement and/or concerted practice. It further classified the conduct as a "restriction by object", meaning it is regarded as inherently harmful to competition without the need to prove actual effects on the market.

As a result, each of the four companies was fined EUR 50,000, while the Chamber of Commerce was fined EUR 18,600 for organising and facilitating the coordination. According to the CPC, lower fines were imposed due to the short duration of the infringement and with the aim of preventing further violations.

Cartel decision in the MTPL insurance market

As part of its broader enforcement efforts, the CPC also adopted a separate decision establishing the existence of a cartel among ten insurance companies active in the MTPL insurance market.

The CPC found that between 1 March 2024 and 7 May 2024, the insurers exchanged commercially sensitive information and coordinated decisions to simultaneously increase the operational cost component of the MTPL premium (the so-called "administrative surcharge"). The companies adopted identical or mutually aligned pricing decisions within an extremely short timeframe, replacing independent commercial conduct with coordinated market behaviour.

Given the nature of the conduct, which involved price coordination and information exchange, the CPC classified it as a "restriction by object", i.e. a serious infringement that is prohibited without requiring proof of actual market effects.

Based on the established facts, the CPC imposed misdemeanour fines totalling approximately EUR 281,000 on the involved insurers.

Ramped-up enforcement under the Unfair Trading Practices Act

In parallel with its antitrust actions, the CPC has intensified enforcement of the Unfair Trading Practices in the Agricultural and Food Supply Chain Act (UTP Act). Earlier this year, proceedings were initiated against two supermarket chains for alleged UTP violations. According to the Deputy Minister of Economy, a total of 30 companies has since been fined for breaches of the UTP Act, with those decisions currently under challenge before the Administrative Court. He also noted an increase in complaints from suppliers regarding supermarket practices.

Looking ahead, proposed amendments to the UTP Act are expected to introduce fines calculated as a percentage of turnover. If adopted, this change would significantly increase the maximum penalties, which are currently capped at EUR 20,000.

authors: Zoran Šoljaga, Filip Zafirovski