Amazon, in a conference call late last year, told Nest that it would not be listing any of Nest's new products, including smart thermostat and home security products, among others, on its website, the Business Insider reported.
After weeks of being unresponsive to Nest, Amazon informed the company that the directive "came from the top," something Nest took to mean that it had been handed down by CEO Jeff Bezos.
However, there has been no direct confirmation on this, the report said.
As a result of Amazon's decision, Nest decided to stop selling any of its products through Amazon, meaning the limited number of Nest devices listed on Amazon are expected to disappear from the site once current inventory is sold out.
The company has also determined to remove its current set of older products from Amazon because it wanted to be able to offer its full portfolio of devices, or nothing at all, the report said.
Amazon's move marks the latest development in their rocky relationship over the future of the smart home.
The online retailer had steadfastly refused to sell some Google-branded products like the Google Home voice assistant speaker and the company's Pixel smartphones.
Last summer, Amazon launched a Prime Video app for Android, but it's yet to add support for streaming its content with a Chromecast.
On its part, Google had removed YouTube from Amazon's Fire TV streaming products and the Echo Show/Spot, claiming that Amazon has violated its terms of service with those implementations of the YouTube app.
Both Nest and Amazon have declined to comment, the report said.
Acquisition of Ring, a maker of smart home doorbell and in-home camera last month, has put Amazon in a much better position to integrate its products with Alexa, accelerating its ability to compete with Google's own smart home ambitions, the report said.