Groceries Code Adjudicator launches investigation into Amazon

The U.K.’s Groceries Code Adjudicator announced that it has launched a targeted investigation into whether Amazon has breached paragraph 5 — no delay in Payments — of the Groceries Code. The GCA says it has reasonable grounds to suspect that Amazon has breached paragraph 5 of the Code from March 1, 2022 to June 20, 2025 based on evidence from a range of sources. The investigation will cover the extent to which paragraph 5 of the Code may have been breached; any impact of Amazon’s conduct on suppliers; and the root causes of any issues. In particular it will focus on the nature, extent and impact of practices which may have resulted in delays in payments including Amazon’s receipt of goods and payment processes, its processes for managing supplier concerns relating to deductions from payments, and its use of settlements of deductions in its commercial negotiations with suppliers. Adjudicator Mark White said: “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.”