The UK's grocery watchdog has launched an investigation into whether Amazon has been delaying payments to food suppliers, a report claims. According to a report by The Financial Times, the Groceries Code Adjudicator (GCA) has said that it has "reasonable grounds to suspect" the e-commerce major for delayed payments to suppliers between March 2022 and June 2025. The investigation was reportedly announced after preliminary "evidence" was brought to the GCA's attention. The watchdog is responsible for ensuring fair treatment of suppliers by the UK's largest grocers. Amazon sells groceries in the UK through its website and Amazon Fresh convenience stores.

Amazon said that it takes the grocery code “incredibly seriously” and intends to fully cooperate with the watchdog throughout the investigation, the report notes. While the company expressed “disappointment” over the inquiry, it said it views the process as a chance to show its commitment to compliance.“We have already made significant improvements . . . including to payment practices,” Amazon added.

The GCA probe into Amazon follows the watchdog’s prior warnings to the company about compliance with the Groceries Supply Code of Practice (GSCOP). The regulator notes that it has now received new evidence from suppliers.GCA head Mark White said to the FT that the alleged issues may pose financial risks to suppliers. If breaches are confirmed, Amazon could face public disclosure or fines up to 1% of its annual UK revenue. Amazon has been subject to GSCOP rules since 2022 after its grocery sales exceeded 1 billion pounds annually.The GCA also raised concerns about the e-tailer’s practices related to product delisting and certain supplier payments, such as potential marketing contributions. It warned that a separate investigation could follow if these issues are not addressed.