On Friday, the British grocery guard dog started an investigation into the fact that the Amazon online retail giant made late payments to food suppliers. The judge of the spending code (GCA) said he had “reasonable reasons” to suspect that Amazon has violated the rules of the sector that prohibit the delayed payments to suppliers in Great Britain between March 2022 and June 2025.
“I decided to launch this targeted investigation based on the range of tests that I saw from a multiple source,” said judge Mark White in a note.
Amazon has become a UK food dealer designated in 2022. This has made it subject to rules in the sector that guarantee the major retailers of Great Britain – those with an annual turnover of food higher than £ 1 billion ($ 1.3 billion) – deal with suppliers in a fair way.
“The alleged delays could expose Amazon suppliers to excessive risk and unexpected costs, potentially influencing their ability to invest and innovate,” added White.If there is a violation, Amazon could face a fine of up to one percent of his annual revenues in the United Kingdom.
A spokesman for Amazon said that the company “will fully collaborate” with investigations.
“We have already made significant improvements to our experience as food provider, even for payment practices,” they added.
The GCA last year declared to Amazon that it had to undertake a “quick and complete” action to respect the rules of the sector, following complaints by suppliers.
He decided to launch a formal probe on Friday following “further detailed tests on experiences with Amazon”, added the regulator.
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