UK regulator launches investigation into Amazon over late payments
The Groceries Code Adjudicator (GCA) has launched a targeted investigation into whether Amazon has breached the Groceries Code.
In a statement on Monday (11 August), the regulator said it has reasonable grounds to suspect that Amazon has breached paragraph 5 of the Code (No delay in Payments) from 1 March 2022 to 20 June 2025. This is based on evidence from a range of sources, it said.
The investigation will cover the extent to which paragraph 5 of the Code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues.
In particular, it will focus on the nature, extent and impact of practices which may have resulted in delays in payments, including Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers.
The investigation will cover the period between Amazon’s designation (1 March 2022) and 20 June 2025, but will focus on the period since 1 January 2024, to have the fullest understanding of Amazon’s contemporaneous practices, the regulator said.
“Payment delays 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,” said Adjudicator Mark White.
“I decided to launch this targeted investigation based on the range of evidence I have seen from multiple sources. It will allow me to determine whether Amazon has breached paragraph 5 of the Groceries Code and the root cause of any breach.
“I encourage all direct suppliers and other stakeholders to respond to my call for evidence and provide information about your experiences with Amazon. All responses will be completely confidential.”
