Amazon Under Scrutiny: Britain's Grocery Regulator Probes Payment Delays

Britain's grocery watchdog has launched a formal investigation into Amazon, scrutinizing whether the e-commerce behemoth breached regulations concerning timely payments to suppliers. This investigation covers a period from March 2022 to June 2025, examining the potential risks and costs imposed on suppliers due to delayed payments.

According to the Groceries Code Adjudicator (GCA), there is suspicion that Amazon violated paragraph 5 of the Groceries Supply Code of Practice, which emphasizes the necessity for prompt payment. Delays in payment might hinder suppliers' ability to invest and innovate, warned adjudicator Mark White.

As part of the probe, the GCA will explore Amazon's payment systems and its handling of supplier disputes. Notably, the review will assess if deductions settlements are applied unfairly during commercial negotiations. Amazon had previously been cautioned about its compliance, and financial penalties could reach up to 1% of the company's UK turnover if violations are confirmed.

(With inputs from agencies.)