Watchdog tells Amazon to follow grocery supply rules

The UK competition regulator has said Amazon is now officially considered a grocery retailer and must follow its supply code.

The Competition and Markets Authority (CMA) claimed that designating Amazon as a grocery retailer will help to protect its UK supplier base.

This move means the online technology giant will need to follow the code of conduct set by the Groceries Code Adjudicator watchdog.

The watchdog has focused it duties in recent years on the treatment of suppliers, particularly relating to delays in payments or damaging payment terms between supermarkets and their suppliers.

Amazon has rapidly expanded its UK grocery presence in recent years and has now opened eight physical stores, after opening its first Amazon Fresh high street store during the pandemic.

Adam Land, senior director for remedies, business and financial analysis at the CMA, said: “Households across the UK are increasingly using Amazon to buy food and other essential items.

“Today’s decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve.

“These rules mean that the thousands of companies supplying Amazon with groceries are now protected from potential unfair business practices.

“We’ll continue to keep a close eye on the sector to make sure all major grocery retailers are bound by the same rules.”

Am Amazon spokesman said: “We strive to build successful, long-term relationships with our suppliers and look forward to working with the Groceries Code Adjudicator.

“We are proud to work with thousands of suppliers and offer a great shop window for their products in the UK and around the world.”