The UK’s grocery sector watchdog, the Groceries Code Adjudicator (GCA), has launched a formal investigation into Amazon, amid claims that the tech and retail giant is failing to pay suppliers on time—a potential breach of the legally binding Groceries Supply Code of Practice.
The GCA, which oversees the relationships between the UK’s 14 largest grocery retailers and their direct suppliers, said it had “reasonable grounds” to suspect that Amazon had violated the code.
The investigation specifically targets Amazon’s UK grocery operations, including Amazon Fresh and Whole Foods, which the company acquired in 2017.
This marks the third investigation ever conducted by the GCA since its establishment in 2013, following previous probes into Tesco and the Co-op. The watchdog, led by adjudicator Mark White, holds the authority to fine companies up to 1% of their annual turnover for breaching the code.
“Delays in payment can significantly harm suppliers,” said White. “The alleged failures could place small and medium-sized suppliers under unnecessary financial pressure, potentially hindering their ability to invest and innovate.”
The investigation follows a 2024 GCA survey, which revealed Amazon received more complaints from suppliers than any other major UK grocery retailer.
Despite being warned in July 2024 to improve its supplier compliance urgently, Amazon has continued to face scrutiny over its business practices.
The current probe will examine Amazon’s conduct from January 2024 onwards, although the GCA noted there were suspected breaches stretching as far back as March 2022.
The regulator is now urging suppliers to submit evidence by 8 August 2025, assuring that all submissions will be treated confidentially.
In response, Amazon stated it takes the groceries code “incredibly seriously” and intends to cooperate with the investigation fully.
“We are disappointed by this decision, but welcome the opportunity to demonstrate our continued compliance,” said a company spokesperson. “We’ve made meaningful improvements to supplier payment processes, with a consistent year-on-year decline in complaints.”
Amazon also reiterated its commitment to enhancing the supplier experience, adding that further reforms were already underway.
The GCA said it has also received reports regarding other possible issues involving Amazon, and warned that further investigations could follow if additional evidence comes to light.
While the GCA previously reprimanded Tesco and the Co-op, this is the first time Amazon has been the subject of a formal inquiry by the regulator. If found in breach, the company could face hefty financial penalties and increased pressure to reform its supplier relationships within the UK grocery market.
