The government will not tolerate any form of unfair practices, and violations will be strictly penalized. Goran Trajkovski, the Director of the State Market Inspectorate, announced in a press conference on Wednesday that over 40 teams and 120 inspectors are actively monitoring compliance across Macedonia. Their focus is ensuring the implementation of the government’s decision to cap profit margins on basic food products.

Trajkovski explained that the inspectors are visiting large stores today, smaller retailers and bakeries tomorrow, and will return to large retailers on Friday to verify if prices have been unjustly increased in recent times.

“I urge all retailers and wholesalers to comply with the government’s decision. Any attempts to circumvent the law will lead to penalties. Yesterday, small retailers did not take the decision seriously, so today we are enforcing it strictly. In the future, non-compliant facilities may be shut down. Retailers are expected to first use their existing stock, based on purchase invoices from large suppliers. Any new stock acquired during the decision’s validity will reveal if the provisions of up to 10% gross profit margin are respected,” Trajkovski stated.

He clarified that the government’s decision limits profit margins to 10% for both large and small retailers, including bakeries, as outlined in the Law on Trade, Article 3. If smaller retailers already operate within a 6% profit margin, they are not required to reduce prices further. However, retailers who previously exceeded the 10% margin must adjust. Citizens may notice that some products remain at the same price, as they were already within the allowed margin. These products should display a “lower costs, more for you” label, making it clear which items fall under the decision.

Trajkovski expressed disappointment that many retailers had failed to apply these labels on 20-30% of products the previous day. Inspectors are currently assessing the situation to ensure compliance, with the labels being clearly visible and products falling within the capped profit margin.

The State Market Inspectorate is responsible for ensuring both large and small retailers adhere to the government’s decision. The ruling, announced on Friday and published in the official gazette on Monday, became effective on Tuesday, giving retailers time to adjust prices accordingly. Fines for non-compliance range from EUR 2,000 to 10,000. If any retailer is found engaging in unfair trade practices, the law allows for the closure of their premises.

By capping profit margins on 70 basic food products, the government expects prices to drop by 10%. Retailers are required to mark these discounted items with the label “lower costs, more for you.”