The UK’s grocery industry watchdog has launched an investigation into Amazon over allegations that the retail and technology company is failing to pay its suppliers on time.
The Groceries Code Adjudicator (GCA) said it had “reasonable grounds” to suspect that Amazon had breached a part of the groceries supply code of practice, which mandates that there should not be delays in payments made to suppliers.
The investigation into Amazon comes almost a year after the GCA told the online retailer it needed to take “swift and comprehensive action” to improve its compliance with industry rules designed to protect suppliers.
The GCA is responsible for regulating the relationships between the UK’s 14 largest grocery retailers – including the biggest supermarkets Tesco and Sainsbury’s – and their direct suppliers.
The investigation into Amazon’s grocery retail arm is its third since the GCA was established in 2013 after inquiries into Tesco and the Co-op. The watchdog has the power to fine a company up to 1% of turnover if it is found to have broken the groceries code.
The adjudicator, Mark White, said: “Delays in payment can significantly harm suppliers. The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially affecting their ability to invest and innovate.”
The company sells groceries in the UK through its Amazon Fresh branded stores and online retail operation, as well the Whole Foods chain, which it bought in 2017 for $13.7bn (£10.2bn).
Suppliers raised more issues with Amazon than with other retailers, according to a survey for the GCA carried out in 2024.
After the warning to Amazon last July, the GCA said it had monitored the retailer’s actions and heard detailed evidence about suppliers’ experiences.
The GCA said on Friday it had grounds to suspect Amazon had breached paragraph 5 of the groceries code between 1 March 2022 and 20 June 2025, but would focus its investigations on the period from the start of 2024 to gain the best understanding of Amazon’s current practices.
The watchdog is calling on suppliers to send in evidence by 8 August. It added that all responses would remain confidential.
after newsletter promotion
The GCA said it had also received information about other issues at Amazon, adding that it would “not hesitate” to launch further investigations if required.
It has previously reprimanded Tesco over its treatment of suppliers after a year-long investigation but said it was not able to fine the supermarket chain because the alleged offences were committed before the government handed the GCA extra powers in 2015, allowing it to fine companies in 2015. It also investigated Co-op in 2018.
Amazon said it took “the groceries supply code of practice incredibly seriously” and added that it would “cooperate fully with the adjudicator”.
The spokesperson said: “While we are disappointed with this decision, we welcome the opportunity to further demonstrate our ongoing compliance with this particular section of the code.
“We have already made significant improvements to our grocery supplier experience, including to payment practices, with supplier contacts on this reducing year-on-year.”
“We will continue to listen and work with our grocery suppliers as we roll out further changes.”