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Amazon under UK investigation over alleged failure to pay suppliers on time
- The Groceries Code Adjudicator (GCA) in the UK is investigating Amazon over alleged delays in paying suppliers as per the groceries supply code of practice.
- This is the third investigation by the GCA since its establishment in 2013, with the power to fine companies up to 1% of turnover for breaches.
- Amazon has been warned to improve compliance previously, especially regarding timely payments to suppliers.
- Suppliers have reported more issues with Amazon compared to other retailers according to a survey.
- The GCA suspects Amazon of breaching paragraph 5 of the groceries code between March 2022 and June 2025.
- The watchdog is focusing the investigation on the period starting from 2024 to understand Amazon's current practices better.
- Suppliers are urged to provide evidence by August 8, with all responses being kept confidential.
- The GCA has indicated readiness to launch further investigations into Amazon based on received information about other issues.
- Amazon claims to take the groceries supply code of practice seriously and expresses willingness to cooperate with the adjudicator.
- The company mentions making significant improvements to payment practices and supplier experience while aiming to continue collaborating with grocery suppliers.
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