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Businesses United Kingdom

Amazon Labeled a Grocer by UK Watchdog, Must Abide by New Rules (bloomberg.com) 71

Britain's antitrust regulator designated Amazon.com as a grocery retailer, subjecting the online retail giant to the same rules followed by U.K. supermarket chains, such as Tesco. From a report: The Groceries Supply Code of Practice prohibits companies from making changes to supply contracts at short notice, and requires retailers to give appropriate period of notice if they no longer want to use a supplier and give reasons for ending contracts. It means that Amazon could now face a fine of as much as 1% of its U.K. revenue if it's deemed to have mistreated vendors. The Seattle-based company sells groceries online under its Amazon Fresh banner, as well as through a partnership with supermarket chain Wm Morrison Supermarkets. It has 15 Amazon Fresh stores and seven Whole Foods stores in Greater London and has a minority stake in food delivery service Deliveroo. "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," said Adam Land, senior director of remedies, business and financial analysis at the Competition and Markets Authority.
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Amazon Labeled a Grocer by UK Watchdog, Must Abide by New Rules

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  • by syn3rg ( 530741 ) on Wednesday February 09, 2022 @01:53PM (#62253319) Homepage
    No more groceries from Amazon in the UK.
    • Comment removed based on user account deletion
    • by stikves ( 127823 )

      I don't know how it was across the pond, but there Amazon food delivery was a God sent during the pandemic.

      I had to avoid Costco. Shoppers would just squeeze their heads in front of you, and our local one had *all* their cashiers got covid. Their delivery was abysmal, and then I "discovered" Amazon fresh.

      Yes, things have changed. I now shop in store. But losing online food delivery would be really bad a year ago.

      • Most of the major supermarkets in the UK do delivery, so losing Amazon wouldn't be an issue.

        At the start of the pandemic when lots of people switched to using it they did have trouble meeting demand as it took a while for them to scale up.

      • Why would you get food delivered from Amazon rather than from an actual grocery store? That's just mental.

        • by Anonymous Coward

          Why would you get food delivered from Amazon rather than from an actual grocery store? That's just mental.

          Amazon partners with Morrisons to deliver in areas Morrisons doesn't normally do so. But every supermarket of any size delivers in the UK.

        • Amazon has better logistics than a grocery store. They offer cheaper prices, better delivery times, and when you place an order for something you actually get the item rather than it being out of stock.
          • by jabuzz ( 182671 )

            Better logistics for groceries than the likes of Tesco, Asda, Sainburys etc. LOL. You clearly have no idea what so ever about the UK groceries sector. There was well established online shopping as well as click and collect (like online but you have to drive to the store to pick it up) that had existed for many years (well over a decade) prior to the pandemic.

            Admittedly it can be difficult to book a slot for a delivery tomorrow due to the service being much busier than pre-pandemic. However you can book your

            • by Altus ( 1034 )

              how do they handle it when you order something and its not in the store? how do they handle substitutes, do you actually always get what you want. In my experience with delivery (particularly with the supply chain issues we have had recently) we often order things and then the shopper cannot get in the store and then don't end up getting it.

              That never happens with amazon, so what I will often do is a large order from a store and then some targeted orders from Amazon to supplement. If Amazon says they hav

          • Sounds like you have very poor grocery stores. Amazon definitely doesn't beat any of our local grocery stores in price, quality, stock, or delivery time.
            Is Amazon the best in the USA because absolutely everything else there is shit? Honestly half the USA business that startup in Europe leave us scratch our head. Like Uber eats disrupting the catering industry ... by promising a service that a Dutch company started in 2000... Same with Amazon providing literally nothing new or better than any other option we

      • There was no food delivery. Amazon's groceries completely dried up during the pandemic, they had barely anything listed on their website. The 5 major supermarkets in the UK weren't offering home delivery as they were suddenly fully booked for the forthcoming weeks of available bookings. Good thing the mortality was low as the vast majority had to brave the gauntlet of supermarket shopping during a pandemic.
        • > The 5 major supermarkets in the UK weren't offering home delivery

          Bollocks. I had groceries delivered every single week and still do. I went into the store once for each Christmas as delivery slots around then are always booked up early, but I do that every year anyway.

          There was a brief and hilarious time during April 2020 when you had to join a queue of over 5000 to merely get into the Ocado site, with no guarantee there'd be any delivery slots when you finally did.

      • We've had good online delivery of groceries from supermarkets since the 1990s.

        A while back Amazon tried to come in and disrupt the market here with algorithms and whatnot only to discover that there was a mature market with well established players in strong competition who were not in fact a bunch of rubes.

    • by ljw1004 ( 764174 )

      No more groceries from Amazon in the UK.

      What do you mean?
      1. "This is why we can't have nice things" - because of meddlesome government overreach
      2. It wasn't right that Amazon Fresh was able to undercut other grocers who abided by stable-supply-chain rules that contributed better to a smooth-functioning society, so it's good that Amazon Fresh will no longer be able to undercut them.
      3. Amazon's grocery business must have been a low enough profit-maker that it'll be cheaper for Amazon to forego those profits than to find alternatives
      4. Grocery is a

      • by suutar ( 1860506 )

        I was thinking 4, myself, but I suppose 3 is a possibility.

      • But, but, but... freedumbs! Big gubbermint bad! How dare they interfere with Bezos' penis rocket funds?!
      • Comment removed based on user account deletion
    • In other words, spoiled child takes his toys and goes home. He's special and unique and those rules simply don't apply to him.

    • by rgmoore ( 133276 )

      Amazon has accepted regulation in the past. A good example is California requiring Amazon to collect sales tax on purchases. Amazon claimed that it didn't have a business presence in California, so it didn't have to collect taxes. California argued that selling on behalf of associates based in state gave it enough presence in California that it needed to collect sales taxes. After some back and forth, Amazon gave in and started collecting sales taxes.

      What's really interesting is that this had the exac

      • by sabri ( 584428 )

        After some back and forth, Amazon gave in and started collecting sales taxes.

        Because they were not the ones paying it. It's the customers.

        To Amazon, it only sucked because they now had to adjust their checkout flow and keep track of the ever-changing state, county, and local municipal taxes.

        But, as you rightfully state:

        Once they started collecting sales taxes, their motivation for avoiding brick-and-mortar businesses disappeared, too.

        • by rgmoore ( 133276 )

          Because they were not the ones paying it. It's the customers.

          It's a bit more than that. In theory, customers who avoided sales tax by buying online were supposed to pay it with their income tax; most tax preparation software asks about this. In practice, few people paid, which is exactly why California wanted Amazon to collect the tax for them. Sales tax in California is substantial- it's 9.5% where I am- so shoppers could save real money buying online and not paying tax on the purchase, even accounting

    • John Oliver has a video on Union Busting, and it's nowhere's near his best work (his best work ever would be the "Eat Shit Bob Murray" musical extravaganza / anti-SLAPP lawsuit video, which is as glorious as it sounds), but it has one truly Amazing statistic:

      In 100% of the cases where workers try to Unionize employers threaten to leave.

      They only actually leave in 1% of the cases.

      This makes perfect sense. Moving a short distance won't help. Moving a long distance is so expensive they'd need cheape
    • by dohzer ( 867770 )

      And just like with Facebook, nothing of value will be lost by them pulling out.

  • Are they applying these regulations to everything Amazon sells, or only to the grocery portion of their business? If it's only the food section, then that makes sense, but if they want to apply the grocery regulations on clothing, books, home repair items, etc., that's nuts.

    • Makes sense though 'cus nuts are groceries.
    • by Rhipf ( 525263 )

      Do brick and mortar (BnM) grocery stores only have regulations on the food items they sell? If a BnM grocery store is selling gardening items are those exempted from the grocery regulations? If BnM groceries need to abide by the regulations when they sell gardening items then Amazon should have to follow the regulations for all the items they sell. If they don't like this they could always branch out the Amazon Fresh items as a separate business.

    • If Amazon wants to sell all things to all people, then it's going to have to comply with all the rules. I think it's likely that, faced with compliance with the new laws, Amazon will spin off Amazon Fresh in the UK into its own entity, as suggested above, but then will go through a number of years of litigation resulting in them having to spin it out into its own website, rather than being able to just put "Sold from and fulfilled by Amazon Fresh" in Flyspeck 3 [catb.org] under the product description on amazon.co.uk
    • ... if they want to apply the grocery regulations on clothing, books, home repair items, etc., that's nuts.

      It sounds perfectly reasonable to me. What I would like to see is Amazon behaving like a proper retailer, where they take some responsibility for the quality of the goods they sell. My recent experience of non-books purchases from Amazon is that I might as well have been buying cheap tat from some dodgy bloke with a van.

  • Amazon, meet the real world.

Isn't it interesting that the same people who laugh at science fiction listen to weather forecasts and economists? -- Kelvin Throop III

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