Amazon faces potential UK regulatory action over treatment of suppliers – Amazon.com (NASDAQ:AMZN)

Amazon.com Inc. AMZN could face potential regulatory action by the UK food regulator for failing to meet industry standards designed to protect suppliers.

Reuters reports that the Groceries Code Adjudicator (GCA) has warned Amazon of a formal investigation if the company fails to improve its compliance with the Groceries Supply Code of Practice (GSCOP).

Amazon, subject to the Code from 2022, saw its Code compliance rate drop from 59% in 2023 to 47%, placing it last among retailers.

Read also: Amazon adjusts grocery game plan, analysts predict growth from smart carts and automated fulfillment centers

The GCA directed Amazon to take swift and comprehensive action to comply with the Code.

Food Code spokesman Mark White stressed that a formal investigation could be launched if the improvements made by Amazon prove insufficient.

The GCA can impose financial penalties of up to 1% of a large UK retailer’s turnover.

An Amazon spokesperson acknowledged the survey results were disappointing and expressed a commitment to improving. Amazon plans further changes, including faster resolution of financial disputes and improved account management support for smaller suppliers.

American big tech companies, including Amazon, Apple Inc AAPL, Meta Inc Platforms FINISHAND Microsoft Corp MSFThave come to the attention of global regulators by allegedly using their influence to thwart smaller players.

Reduction:AMZN shares were down 1.80% to $196.20 as of last check on Thursday.

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Reservation: This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

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