Amazon food retail services to face tougher regulation in UK
Amazon food stores will have to follow regulations set out by the Groceries Supply Code of Practice, the Competition and Markets Authority (CMA) revealed on Wednesday.
The news comes as the company reaches more than the £1bn threshold in grocery sales in the UK through its food retail stores.
Complying with these rules will affect how the company’s food stores work with suppliers to ensure fair practice.
Under the code, retailers cannot change supply contracts within a short period of time, and they must give a suitable notice period, as well as reasonable grounds for ending a contract with a supplier.
An independent Groceries Code Adjudicator examines whether retailers are following the code.
Senior Director of remedies, business and financial analysis at the CMA, Adam Land said: “[The] decision to designate Amazon helps to ensure a level playing field for companies active in the groceries sector as people’s buying habits evolve.”
Several major food retailers already follow the Groceries Supply Code of Practice in the UK, including Sainsbury’s, Tesco, Morrisons and ASDA.
In 2021, Amazon opened 17 retail stores in the UK, including 15 Amazon Fresh food shops and two Amazon 4-star stores.
The company has also been renowned for introducing ‘just walk out’ AI-powered technology into some Amazon Fresh stores, allowing customers to have a checkout-free experience when grocery shopping.