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LONDON, June 20, 2025 (BSS/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 source," 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 œ1 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.