The British antitrust regulator awarded Amazon Inc. the status of a grocery retailer, which obliges the IT giant to comply with the rules that other chain supermarkets are subject to. Amazon promises fines in case of violations.
The law prohibits grocery retailers from making changes to supply contracts on short notice and requires advance notice. If the store no longer wants to cooperate with the supplier, it must notify this within a specified period and cannot terminate the contract overnight. Now similar rules apply to Amazon. If an IT ginat is found to be in violation, it will face a fine of 1% of UK income. Execution is monitored by an independent arbiter.
Amazon has so far opened 15 Amazon Fresh stores in the UK, 7 Whole Foods stores in the Greater London area and owns a minority stake in food delivery service Deliveroo.
"The decision to designate Amazon as a grocery retailer helps ensure a level playing field for all food companies," said Adam Land, senior director of legal, business and financial analysis, Competition and Markets Authority.
bbabo.Net