LONDON (ShareCast) - (Sharecast News) - The UK's Groceries Code Adjudicator (GCA) opened a formal investigation into Amazon on Friday, over concerns that the retail giant may have breached rules requiring timely payments to suppliers.
The probe centred on whether Amazon violated paragraph five of the Groceries Supply Code of Practice, which prohibits delays in payments, during the period from 1 March 2022 to 20 June 2025.

In its announcement, the GCA said it had "reasonable grounds" to suspect breaches based on evidence gathered from multiple sources.

The investigation would examine the nature and impact of Amazon's payment practices, including how it handles goods receipts, payment processes, deductions from payments, and how those deductions could be used in commercial negotiations.

Although the inquiry covered Amazon's entire tenure as a designated retailer under the Code, the focus would be on activity since January 2024 to better understand current practices.

"Delays in payment can significantly harm suppliers," said Groceries Code Adjudicator Mark White.

"The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate."

White said he had decided to launch the "targeted investigation" based on the range of evidence he had seen from multiple sources.

"It will allow me to determine whether Amazon has breached paragraph five of the Groceries Code and the root cause of any breach."

The GCA previously warned Amazon in 2024 to take "swift and comprehensive action" to address concerns raised by suppliers.

Following continued monitoring and further evidence, White concluded a formal investigation was necessary.

The regulator said it had also received information about other potential issues at Amazon, though they were still under review as part of the GCA's ongoing engagement with the company.

White said he "will not hesitate" to launch further investigations if needed.

The GCA said it was calling on Amazon's direct suppliers and other stakeholders to provide confidential evidence of their experiences via a questionnaire or direct submission by 8 August.

Reporting by Josh White for Sharecast.com.

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