Amazon might face an inquiry over its treatment of UK grocery suppliers, a watchdog warns

LONDON (Reuters) - Britain's food regulator on Thursday threatened Amazon (AMZN.O) with a formal investigation if it doesn't improve its compliance with industry codes aimed at protecting suppliers.

The Grocery Code Assessor (GCA) said in its annual survey for 2024 that less than half of respondents who supply goods directly to Amazon believe the U.S. giant is "systematically" or "largely" complying with the Grocery Supply Code (GSCOP). Amazon's perceived Code compliance score fell to 47%, down from 59% in 2023, with Amazon retaining its position in last place, some 41 percentage points behind Iceland, with 88%, in 13th place.

“We are very disappointed by these results and are committed to improving them,” an Amazon spokesperson said. The GCA said it had called on Amazon to take "swift and comprehensive action" to demonstrate clear compliance with the code. Regulators are monitoring Amazon's changes and their impact to determine whether they are sufficient.

"We will not hesitate to launch a formal investigation where appropriate and necessary to ensure Amazon treats its suppliers fairly and lawfully," food standards assessor Mark White said. Ultimately, the GCA could impose fines of up to 1% of turnover on major UK retailers.