London (AFP) – Britain’s grocery watchdog on Friday launched an investigation into whether online retail giant Amazon made late payments to food suppliers. The Groceries Code Adjudicator (GCA) said it had “reasonable grounds” to suspect Amazon had breached industry rules prohibiting delayed payments to suppliers in Britain between March 2022 and June 2025.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources,” adjudicator Mark White said in a statement. Amazon became a designated UK grocery retailer in 2022. That made it subject to industry rules that ensure Britain’s largest retailers — those with an annual grocery turnover above £1 billion ($1.3 billion) — treat suppliers fairly.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” White added. If a breach is found, Amazon could face a fine of up to one percent of its annual revenue in the UK.
An Amazon spokesperson said the company would “cooperate fully” with the investigation. “We have already made significant improvements to our grocery supplier experience, including to payment practices,” they added.
The GCA last year told Amazon it had to take “swift and comprehensive” action to comply with industry rules, following complaints from suppliers. It decided to launch a formal probe on Friday following “further detailed evidence about experiences with Amazon,” the regulator added.
© 2024 AFP
