Watchdog tells Amazon to follow grocery supply rules

The Competition and Markets Authority claimed that designating Amazon as a grocery retailer will help to protect suppliers.
The Amazon Fresh grocery store in Ealing, west London (Victoria Jones/PA)
PA Archive
Henry Saker-Clark9 February 2022

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.

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

Adam Land, from the CMA

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.”

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in