UK’s GCA launches probe into Amazon alleged delays in supplier payments
The UK's Groceries Code Adjudicator (GCA) has initiated a probe into Amazon after concerns about alleged potential violations of regulations governing the timely payment to suppliers.
The inquiry stems from suspicions that Amazon may have violated paragraph 5 of the code (no delay in payments) between 1 March 2022 and 20 June 2025.
It will particularly scrutinise practices since 1 January 2024 to gain a comprehensive understanding of Amazon's current procedures.
The investigation will assess the extent of any breaches, their impact on suppliers and the underlying causes.
The GCA will examine Amazon's practices related to receiving goods, payment processes, handling supplier concerns about payment deductions and the use of settlements od deductions in its commercial negotiations.
The GCA's decision to investigate follows previous interactions with Amazon. Mark White, the adjudicator, informed Amazon in 2024 that it must take decisive action to adhere to the code.
White stated: “Delays in payment 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.
“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.”
The GCA states that despite Amazon's subsequent efforts, further detailed evidence from suppliers requires targeted investigation into payment practices.
Reports have been received of other Groceries Code issues at Amazon. The GCA continues to work with Amazon to resolve these matters and remains prepared to initiate further investigations if required.
White has called upon direct suppliers and stakeholders to contribute evidence and share their experiences of supplying to Amazon, as part of the GCA's evidence-gathering process for the ongoing investigation, stating: “All responses will be completely confidential.”
In June 2025, Amazon announced plans to downsize its corporate staff as it integrates generative AI technology into its business processes.
