LONDON (Reuters] – Amazon’s (NASDAQ:) food retail in Britain is under increased scrutiny after the Competition Watchdog announced that the rules governing the treatment of suppliers by grocers will apply now to Amazon.

On Wednesday, the Competition and Markets Authority said that Amazon’s growing activity in UK’s grocery sector means it has to comply with the Groceries Supplies Code of Practice.

Retailers with a gross annual turnover greater than 1 million pounds ($1.4 Billion) are eligible for the code.

Amazon doesn’t break down figures on its UK grocery sales so the Code publicly declares that it has exceeded the 1 Billion pound threshold.

This code guarantees that grocers are fair to suppliers. The code prohibits suppliers from changing supply contracts within a short time frame. It also stipulates that retailers must give a reasonable notice to any supplier they do not want to work with and explain why.

This code is applicable to all of Britain’s largest supermarkets including Tesco (OTC)., Sainsbury’s. Asda. and Morrisons.

“Households across the UK are increasingly using Amazon to buy food and other essential items,” said Adam Land, senior director, remedies, business and financial analysis at the CMA.

“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.”

Independent Groceries Code Adjudicator ensures that compliance is maintained.

Amazon spokesmen said that they strive to establish long-lasting, successful relationships with suppliers. They also look forward to working closely with the Groceries Code Adjudicator.

We are proud to have thousands of suppliers as our shop windows and provide great products for customers in the UK.

Amazon expanded its UK presence in 2021 with the opening of 17 stores – 15 Amazon Fresh Food stores and 2 Amazon 4-star Retail stores.

($1 = 0.7367 pounds)