Amazon faces tougher regulation in the UK: Grocery revenue crosses £1bn


Big companies in the global market face a lot of issues as their power continues to grow. These issues are usually from regulators whose job is to ensure that these companies do not abuse their power. If a company gets too big, it can use its advantage to oppress and suppress the competition. This is not healthy for any market. According to reports, the British antitrust regulator “Competition and Markets Authority” (CMA) said recently that due to the increasing activities of Amazon in the British grocery industry, it is now necessary to comply with the “Grocery Supply Code of Conduct” (GSCP).


The UK’s Grocery Supply Code of Conduct applies to retailers with an annual turnover of more than £1 billion ($1.4 billion) in the grocery business. Amazon doesn’t release sales figures for its UK grocery business. However, CMA’s decision means that Amazon’s sales have passed the £1bn thresholds. Analysts believe that Amazon’s food retail market in the UK will face stricter regulation. This is a result of the CMA’s decision.

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Amazon must comply with the Grocery Supply Code of Conduct

The Grocery Supply Code of Conduct aims to ensure that grocery retailers treat their suppliers fairly. It also restricts retailers from changing supply contracts at short notice. Also, if a retailer no longer wants to use a supplier, it must provide reasons for terminating the contract. Furthermore, the retailer must give an appropriate period. Currently, all major UK supermarket groups, including market leaders Tesco, Sainsbury’s, Asda, as well as Morrisons, are bound by the code.

Adam Land, CMA’s senior director of remediation, business, and financial analysis, said: “Families across the UK are increasingly using Amazon to buy food and other essentials. As people’s buying habits shift, the decision to require Amazon to comply with the guidelines helps the industry. It will help to ensure a level playing field for businesses active in the grocery industry”. Assessing compliance with the Grocery Supply Code of Conduct, administered by an independent Grocery Code Assessor (GCA). An Amazon spokesperson said the company has worked hard to build long-term successful relationships with suppliers and looks forward to working with “grocery guidelines reviewers”. We are proud to work with thousands of suppliers and provide a quality showcase for their products in the UK and around the world”.

Last year, Amazon expanded significantly in the UK, including its first 17 brick-and-mortar stores in the UK. Furthermore, the company also has no less than 15 Fresh food stores and two 4-star retail stores. Amazon now has to comply with a set of new rules which will make its business more streamlined.

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