Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The UK’s grocery watchdog has launched an investigation into whether Amazon has been delaying payments to food suppliers after preliminary “evidence” was brought to its attention.
The Groceries Code Adjudicator, which helps ensure the UK’s largest grocers treat suppliers fairly, said in a statement on Friday “it has reasonable grounds to suspect” Amazon had delayed payments to suppliers between March 2022 and June 2025.
Amazon sells groceries in the UK through its own website and a small chain of Amazon Fresh convenience stores, but has struggled to mount a serious challenge to the likes of Tesco and Sainsbury’s.
Since 2022, Amazon’s grocery operation has faced increased scrutiny in the UK. It has been required to comply with the Groceries Supply Code of Practice, a set of guidelines on how retailers should manage supplier relationships, after surpassing £1bn in annual sales.
The GCA said it would look into the nature, extent and impact of practices that may have resulted in Amazon delaying payments, and would focus in particular on the period since January 2024 to the present.
The watchdog’s investigation comes after it warned Amazon last year it must swiftly demonstrate compliance with GSCOP, following complaints made to the GCA by Amazon suppliers about the company’s conduct.
The GCA decided to launch an investigation after monitoring the remedial actions taken by Amazon and receiving further “detailed evidence” from its suppliers. The adjudicator Mark White said on Friday the alleged breaches could expose Amazon’s suppliers to excessive risk and unexpected costs.
If a breach is found, the GCA can force retailers to publish details of the case or, in the most serious breaches, impose a fine of up to 1 per cent of their annual UK revenues.
The GCA, established in 2013, conducted its first major investigation into Tesco, following its accounting scandal in 2014. The UK’s largest supermarket chain was found to have deliberately delayed payments to suppliers to help it meet its own financial targets.
On the whole, fewer grocery suppliers were experiencing issues with major retailers, the GCA said last year.
The GCA on Friday also flagged “other issues” at Amazon, relating to its practices around delisting products and unspecified payments made by suppliers, which could include an obligation to contribute to marketing costs, for example. The watchdog threatened to launch a further investigation unless these other issues are resolved.
Amazon said that it took the grocery code “incredibly seriously” and would co-operate fully with the watchdog during the investigation.
It was “disappointed” with the probe, but would use the investigation as an opportunity to demonstrate its compliance. The company added: “We have already made significant improvements . . . including to payment practices.”