Amazon.Com Inc (NASDAQ:AMZN) faces potential regulatory action from Britain's grocery regulator due to non-compliance with industry standards designed to protect suppliers.
The Groceries Code Adjudicator (GCA) has warned Amazon of a formal investigation unless it improves adherence to the Groceries Supply Code of Practice (GSCOP), Reuters reports.
Amazon, subject to the Code since 2022, has seen its compliance score drop to 47% from 59% in 2023, placing it last among retailers.
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The GCA has instructed Amazon to take swift and comprehensive action to comply with the Code.
The Groceries Code Adjudicator Mark White emphasized the potential for a formal investigation if Amazon's improvements are insufficient.
The GCA can impose financial penalties of up to 1% of a large retailer's UK turnover.
An Amazon spokesperson acknowledged the disappointing survey results and expressed a commitment to improvement. Amazon plans further changes, including faster resolution times for financial disputes and enhanced account management support for smaller suppliers.
US Big Tech companies, including Amazon, Apple Inc (NASDAQ:AAPL), Meta Platforms Inc (NASDAQ:META), and Microsoft Corp (NASDAQ:MSFT), have drawn global regulatory attention for allegedly leveraging their influence to thwart the smaller players.
Price Action: AMZN shares are down 1.80% at $196.20 at the last check on Thursday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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