The United Kingdom’s grocery regulator has launched a formal investigation into Amazon over allegations of delayed payments to its food suppliers, raising concerns about the online giant’s compliance with industry rules. The Groceries Code Adjudicator (GCA) announced on Friday that it had “reasonable grounds” to believe Amazon may have breached the Groceries Supply Code of Practice between March 2022 and June 2025.
Mark White, the adjudicator, said the decision to initiate the investigation was based on a substantial body of evidence from multiple sources. “I decided to launch this targeted investigation based on the range of evidence I have seen,” he stated, pointing to widespread supplier complaints.
Amazon Under Increased Regulatory Scrutiny
Amazon was designated as a UK grocery retailer in 2022, after meeting the threshold of £1 billion in annual grocery turnover. That designation subjects the company to the Groceries Supply Code, a regulatory framework designed to ensure the UK’s largest retailers treat suppliers fairly—particularly with respect to timely payments and transparent commercial practices.
According to White, the alleged delays in payments could put suppliers under unnecessary financial strain. “These alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate,” he said.
Amazon Responds, Promises Cooperation
In response, an Amazon spokesperson said the company would “cooperate fully” with the GCA’s investigation. The spokesperson also noted that Amazon had already made improvements in how it handles grocery supplier relationships, including changes to payment processes.
“We have already made significant improvements to our grocery supplier experience, including to payment practices,” the company said.
Possible Penalties if Found Guilty
If the investigation concludes that Amazon breached the rules, the company could face financial penalties. The GCA has the authority to impose fines of up to 1% of a retailer’s annual UK revenue. For a company of Amazon’s scale, that could result in a substantial financial sanction.
This is not the first time Amazon has faced regulatory pressure in the UK grocery sector. In 2023, the GCA directed the company to take “swift and comprehensive” steps to address supplier complaints. However, the latest probe follows “further detailed evidence” indicating continued issues, prompting the watchdog to escalate the matter to a formal investigation.
The outcome of the probe could have wide-reaching implications for how Amazon operates within the UK grocery landscape. It also marks a significant test of the Groceries Code’s ability to hold even the largest global players accountable for their treatment of suppliers. As the investigation proceeds, industry observers and stakeholders will be watching closely to see whether the regulator imposes penalties—and whether Amazon makes deeper structural changes to its supplier practices.