Ecommerce in North Macedonia

According to the Annual Report of the Association for E-commerce for 2023 for North Macedonia, the value of total realized online transactions in 2022 was up 25% compared to 2021 and the number of online transactions in 2022 was up 13.6% compared to 2021. According to the same report, the number of internets selling points based in North Macedonia (“e-selling points”) in April 2023 was 1,908.

Furthermore, in 2022, a new Law on Payment Services and Payment Systems was enacted, which entered into force on 1 January 2023.

The Law on Payment Services and Payment Systems regulates payment services, requiring providers to be licensed, which ensures secure transactions for e-commerce. It mandates transparency in fees, helping online businesses manage costs and communicate with customers. It also establishes user rights and dispute resolution procedures, which protect customers and help businesses address payment issues effectively. Additionally, it allows for the portability of payment accounts, making it easier for customers to shop online.

The law also helps align North Macedonia's regulations with EU standards, which is important for the country's EU membership goals and its participation in the Single Euro Payments Area (SEPA).

Additionally, it introduces a basic payment account that anyone can open for free, especially benefiting vulnerable groups and promoting financial inclusion.

No. There are no significant barriers preventing foreign companies from conducting e-business in North Macedonia. There is no strict legal need for a business entity to establish a local presence: products and services can be sold from abroad.

However, foreign entities also may undertake such activity through a subsidiary or local branch.

According to the Macedonian Law on Electronic Commerce (the “Law on e-commerce”), each trade company that acts in North Macedonia should render its services in compliance with the laws and other relevant regulations in North Macedonia. These include, inter alia, data protection regulations, consumer protection laws and advertising regulations.

According to the Law on e-commerce, no special authorisation, approval or concession is required for e-businesses. However, each e-business must obtain (if applicable) the approvals that should be obtained in accordance with other regulations.

The Law on e-commerce does not stipulate specific contracts that must be concluded before starting an e-business in North Macedonia that differ from the regulations that apply to starting a bricks-and-mortar business.

Although there is no legal requirement, in general, recommended contracts for starting an e-commerce business in North Macedonia would include:

• Contracts for domain name registration and web hosting;
• Contracts with payment service providers (etc. bank) for methods of payment;
• Privacy policy and Terms and Conditions indented for end users, for compliance with the laws on data protection and consumer protection;
• Supplier contracts and shipping/logistics contracts with local companies;
• Insurance Policies for obtaining liability insurance and other relevant coverage.

Product selection is an important aspect of e-commerce that needs to consider specific national restrictions. These may be product-specific restrictions that apply in all sales channels, such as the obligation to obtain a relevant authorisation in the case of selling or distributing certain products.

On a separate note, at the request of an entity whose rights have been infringed by a certain e-service, the Ministry of the Economy, the Ministry of Administration and Electronic Communications, the Agency for Electronic Communications, or a competent court (“relevant responsible authorities”) should take measures to limit the freedom to provide e-services to e-providers who cause or may cause damage, if the measures are necessary to protect:

• the public interest, especially the protection, investigation, and identification of a crime and initiating criminal proceedings, including the protection of minors and fighting against any type of race, sex, religion or nationality-based hatred, and infringement of human dignity regarding individuals;
• public health;
• public safety, including the protection of national security and defence; and
• consumers, including investors.

The Law on e-commerce does not specify an obligation for defining the audience upfront in cases of addressing consumers and/or professionals. However, depending on the audience, additional laws such as Macedonian Law on Consumer Protection (“Law on Consumer Protection”), Macedonian Law on Personal Data Protection (“Law on Personal Data Protection”) could be applicable. Therefore, to ensure compliance with the aforesaid laws, it is recommended that the business determines this upfront and ensures compliance.

According to the Law on e-commerce, the following information about the e-commerce business must be made easily, directly, and permanently available to its customers on the website:

1. Name or company name of the service provider.
2. Head office or address of the service provider.
3. Contact details, including an electronic address for direct communication.
4. Trade registry details and registration number (if applicable).
5. License or approval details (if applicable, for regulated professions).
6. Tax identification number, if the service provider is a VAT payer.

If prices are listed, it must be clearly indicated whether the prices include delivery costs, taxes, and any other charges that may affect the final price.

If the e-commerce business targets consumers, natural persons, it must also comply with data protection and consumer protection regulations and include a Privacy Policy, Cookie Policy and Terms of Use documents on its website.

Finally, consumer protection regulations require that e-commerce websites clearly and visibly inform consumers of their right to file complaints. This includes providing detailed explanations of the methods and available channels for submitting consumer objections, ensuring that the information is easily readable and accessible.

Yes. To ensure compliance with Macedonian e-commerce, consumer protection and data protection regulations, information displayed on the website needs to be provided in Macedonian language, the official language on the territory of North Macedonia.

Under certain conditions the Albanian language can also be treated as an official language in North Macedonia, such as for certain consumer related information that need to be provided.

The above also applies to the advertising practices.

The Law on e-commerce does not specifically address this issue. However, if the customer reviews contain personal data of customers, then the Law on Personal Data Protection would apply and prior explicit consent should be obtained by the customers whose data would be publicly presented, for that specific purpose. In addition, the Law on Consumer Protection forbids using fake customer reviews and labels it as an unfair trade practice.

While the Law on e-commerce does not specifically address this issue, the Law on Consumer Protection outlines certain practices that could be considered as unfair trade practices. These practices are prohibited in consumer relationships, and non-compliance can lead to penalties, including fines.

Some examples of the unfair trade practices include:

• Misleading Claims: false representations about certifications, endorsements, or compliance with regulations, which are considered misleading practices.
• Bait and Switch: advertising products at a specific price without a reasonable basis for their availability or promoting one product while intending to sell another, which constitutes bait and switch tactics.
• Creating Urgency: making false claims about limited availability to pressure consumers into quick decisions, which is considered aggressive marketing;
• Hidden Costs: describing a product as “free” or “without charge” when there are unavoidable costs associated; and
• Deceptive Marketing Practices: Providing misleading information about consumer rights or using fake reviews to promote products

The Law on e-commerce regulates the form and manner of commercial communication and promotional offers.

In this regard, any promotional offer (including discounts and gifts) must:

• Be clearly identifiable as a promotional offer;
• Include the conditions that must be met to take advantage of the promotion; and

These conditions should be made easily available and represented in a clear and unambiguous manner.

Explicit consent is required for unsolicited marketing communications towards customers, i.e. for direct marketing. Pursuant to the Law on e-commerce and the Law on Personal Data Protection, explicit consent from data subjects is mandatory for unsolicited marketing communications since they fall under the scope of direct marketing.

Some promotion activities can be targeted and under special scrutiny of local authorities such as aggressive sales tactics, direct marketing practices, advertising to children and other vulnerable groups, free trials and subscriptions, due to potential risks to consumers/data subjects or violations of advertising standards.

There are no special rules that apply to e-businesses regarding product returns and defective goods that differ from the general customer and consumer protection rules in North Macedonia

According to the Law on e-commerce, there are no additional provisions for online selling that would apply apart from the provisions of Macedonian Law on the Protection of Competition and Law against Unfair Competition.

According to the Law on e-commerce, no specific legal considerations are relevant to the financial services provided to e-store customers.

The relevant authorities responsible for the legal enforcement of e-commerce regulations in North Macedonia include several key entities.

The main supervising authorities for legal enforcement of the Law on e-commerce are the Ministry of the Economy, the Ministry of Administration and Electronic Communications, and the Agency for Electronic Communications, each within their competencies as defined in law.

In matters related to data protection, the Macedonian Agency for Personal Data Protection is the relevant authority in ensuring adherence to personal data regulations within the e-commerce sector.

Additionally, the State Market Inspectorate conducts inspection supervision through its competent inspectors, operating under the Macedonian Law on the State Market Inspectorate, the Law on e-commerce, and the Law on Consumer Protection.

Private enforcement of consumer rights in North Macedonia can be sought through:

1. Consumer Complaints
   The Law on Consumer Protection stipulates a right for consumers to file an official complaint with the e-commerce business, if they consider their rights to be violated. Therefore, e-commerce websites should clearly and visibly inform consumers of their right to file consumer complaints;
2. Consumer Litigation Disputes
   This method of resolution of consumer disputes is envisaged as a last resort and e-commerce businesses are required to try to resolve these disputes peacefully, either by negotiating directly with the consumer or using alternative methods like mediation, rather than immediately going to court;
3. Alternative Dispute Resolution (out-of-court dispute resolution)
   Consumer disputes can also be resolved through arbitration, mediation or with facilitation of the authorized bodies for the protection of collective rights and interests of consumers; and
4. Authorized bodies for the protection of collective rights and interests of consumers
   These entities have the authority to initiate legal proceedings to protect collective interests and consumer rights against e-commerce business that, through specific activities or failures to act, significantly violates or seriously threatens the collective interests and rights of consumers

There is no publicly available information regarding legal developments in the near future affecting e-commerce businesses.