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The UK grocery watchdog has launched an investigation into whether Amazon is delaying payments to food suppliers after preliminary “evidence” has been highlighted.
The grocery code arbitrator helped ensure that the UK’s biggest grocery store treats its suppliers fairly, saying it had “suspected grounds” on Friday.
Amazon sells groceries in the UK through its own website and a small chain of Amazon’s fresh convenience stores. Since 2022, its grocery sector has faced an increase in scrutiny in the UK.
It must comply with the UK grocery supply code. This is a set of guidelines on how retailers manage supplier relationships after exceeding £1 billion in annual grocery sales.
The GCA said it will investigate the nature, scope and impact of practices that Amazon may have delayed payments, particularly focusing on the period after January 2024.
Amazon did not immediately respond to requests for comment.
This is a developing story
