The Competition and Markets Authority (CMA) has announced that industry rules governing how grocery retailers should treat their suppliers will now apply to Amazon.

The regulator said that the e-commerce giant’s increasing activity in the UK grocery sector over the past few years led it to designate the company under the Groceries Market Investigation Order.

This means that Amazon and its relevant UK subsidiaries must comply with the Groceries Supply Code of Practice.

The code applies to retailers with an annual turnover upwards of £1 billion for grocery sales. Its aim is to ensure these businesses treat suppliers fairly, for example, the rule restricts companies from making changes to supply contracts at short notice.

It also requires retailers to give an appropriate period of notice if they no longer want to use a supplier and provide reasons for ending the contract.

Other retailers subject to the Code include: Ocado Retail; Asda; Co-operative Group; Marks & Spencer; Morrisons; Sainsbury's; Tesco, Waitrose, Aldi; Iceland; Lidl; B&M; and TJ Morris Limited (trading as Home Bargains).

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

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