CMA
designates Amazon under Groceries Order
The
Competition and Markets Authority (CMA) has designated Amazon.com, Incorporated
(Amazon) under the Groceries (Supply Chain Practices) Market Investigation
Order 2009 (the Order).
As
a result, Amazon must comply with the Groceries Supply Code of Practice (the
Code).
The
Code was introduced following the Competition Commission’s groceries market
investigation. It provides terms on which
the large grocery retailers deal with their suppliers. It applies only to "designated retailers”
(i.e., those with turnover exceeding £1 billion with respect to the retail
supply of groceries in the UK and that have been designated by the CMA).
The
CMA considers it appropriate to exercise its discretion to designate Amazon
given the size and nature of its grocery retail activities in the UK.
Amazon
operates its grocery business through two separate and wholly owned
subsidiaries Amazon EU Sarl (which operates Amazon Fresh (comprising an online
grocery delivery service and physical stores) and Fresh & Wild Limited (which
has seven physical grocery stores in London and offering delivery through
Deliveroo).
The
£1 billion groceries threshold for designation has been exceeded by the Amazon
corporate group of companies.
Once
the CMA has designated a grocery retailer, compliance with the Code is managed
by the Groceries Code Adjudicator.
Other
retailers subject to the Code are Ocado Retail Limited, Asda Stores Limited,
Co-operative Group Limited, Marks & Spencer PLC, Wm Morrison Supermarkets
PLC, J Sainsbury PLC, Tesco PLC, Waitrose Limited, Aldi Stores Limited, Iceland
Foods Limited, Lidl GB Limited, B&M Retail Limited, and TJ Morris Limited
(trading as Home Bargains).
https://www.gov.uk/government/news/cma-designates-amazon-as-a-grocery-retailer-to-protect-suppliers
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