UK probes Amazon over suspected late payments to food suppliers

Britain’s grocery watchdog, the Groceries Code Adjudicator (GCA), announced on Friday that it has launched an investigation into whether online retail giant Amazon made late payments to its food suppliers. The GCA stated it has “reasonable grounds” to suspect Amazon has breached industry rules prohibiting delayed payments to suppliers in Britain between March 2022 and June 2025.

Adjudicator Mark White commented, “I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources.” Amazon was designated as a UK grocery retailer in 2022, a status that subjects it to industry regulations designed to ensure that Britain’s largest retailers – those with an annual grocery turnover exceeding £1 billion ($1.3 billion) – treat their suppliers fairly.

White emphasized the potential impact of such delays, stating, “The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.” If a breach of the Groceries Supply Code of Practice is confirmed, Amazon could face a fine of up to one percent of its annual revenue in the UK.

An Amazon spokesperson confirmed the company would “cooperate fully” with the investigation, adding, “We have already made significant improvements to our grocery supplier experience, including to payment practices.”

This formal probe follows previous engagement between the GCA and Amazon. Last year, the GCA had instructed Amazon to take “swift and comprehensive” action to comply with industry rules, in response to complaints from suppliers. The regulator decided to launch the full investigation on Friday after receiving “further detailed evidence about experiences with Amazon.” The investigation will specifically focus on the nature, extent, and impact of practices that may have led to payment delays, including Amazon’s goods receipt and payment processes, its methods for managing supplier concerns regarding deductions from payments, and its use of deduction settlements in commercial negotiations. The GCA has also called for direct suppliers and other stakeholders to submit confidential evidence by August 8, 2025.