The Competition and Markets Authority (CMA) has designated Amazon under the Groceries Market Investigation Order, making industry rules setting out how grocery retailers should treat their suppliers applicable the online retailer.
Amazon and its relevant UK subsidiaries must now comply with the Groceries Supply Code of Practice, which is managed by the independent Groceries Code Adjudicator.
The CMA said Amazon’s increasing activity in the UK groceries’ sector in recent years has led to this designation.
“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,” said Adam Land, senior director for remedies, business and financial analysis at the CMA.
The Code, which applies to retailers with an annual turnover of more than £1 billion from grocery sales, ensures that they treat their suppliers fairly.
“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,” Land added.
Amazon currently supply groceries in the UK through two wholly owned subsidiaries: Amazon EU Sarl and Fresh & Wild Limited.
Other retailers subject to the Code are Ocado Retail, Asda, Co-operative Group, Marks & Spencer, Morrisons, Sainsbury’s, Tesco, Waitrose, Aldi, Iceland Foods, Lidl GB, B&M Retail, and Home Bargains.
