Retail Trade: Online Suppliers

Lord Naseby Excerpts

Wednesday 28th February 2018 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government what discussions they have had with the Competition and Markets Authority about the impact on the United Kingdom retail trade of online suppliers, such as Amazon.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)]

My Lords, Her Majesty’s Government want all parts of the retail sector to thrive. As such, we engage regularly with a range of retailers’ associations and the Competition and Markets Authority. If competition is not working effectively, the CMA has powers to investigate and to take action.

[Lord Naseby (Con)]

Is my noble friend aware of the extent of the dominance of Amazon and the threat that it poses to the retail trade in general and, soon, the grocery trade and pharmaceutical trade? Amazon already controls, in the £1 billion market, 39% of the UK and 57% of the States. Against that background, will the Government level the playing field and consider what France, Germany and so on are looking at in terms of digital taxation, a special sales tax like the USA or indeed a higher rate of VAT, which is possible under our legislation? At the very least, bearing in mind that figure of 39% of today’s £1 billion market in our country, will they set up a monopolies commission inquiry? If they do not, our retail trade as we know it will disappear.

[Lord Henley]

My Lords, It is a matter for the CMA to look at these matters. As I said in my original Answer, it has the power to look at that. With regard to some of the aspects of taxation, I believe that Her Majesty’s Government have led the way on this issue internationally. HMRC continues to work with the online marketplaces to ensure effective action against sellers who are, for example, breaking United Kingdom VAT rules and to prevent new non-compliant sellers joining the market. We believe all those multinationals in that world ought to be paying the taxes due and we will not settle for anything less. Other than that, I think my noble friend should accept that many of the changes that are happening in the marketplace are being driven by what the consumer wants, and our job is to ensure that the marketplace can adapt to that.