Amazon suppliers protected by watchdog’s grocery ruling

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

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

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

Amazon does not break out figures for its UK grocery sales, so its designation under the code publicly confirms for the first time that its sales have crossed the £1 billion threshold.

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

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

Amazon is the world’s biggest retailer. Last Friday its shares recorded the biggest daily jump in valuation in American market history after reporting robust earnings, bolstered by the continued expansion of its cloud computing unit and an $11.8 billion boost from its stake in the electric carmaker Rivian Automotive.



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