LONDON - Britain's grocery regulator has launched a formal investigation into Amazon over suspected delays in payments to food suppliers, citing possible violations of rules designed to protect supplier interests.

The Groceries Code Adjudicator (GCA) said on Friday it has "reasonable grounds to suspect" Amazon breached Paragraph 5 of the Groceries Supply Code of Practice (GSCOP), which requires retailers to pay suppliers on time.

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The probe will cover Amazon's conduct from March 1, 2022 to June 20, 2025, with a focus on practices since January 2024. It will examine how Amazon processes payments, resolves disputed deductions, and negotiates settlements with suppliers.

Amazon, which operates online grocery sales and Amazon Fresh stores in Britain, came under the GCA's oversight in 2022 after exceeding 1 billion pounds ($1.34 billion) in annual grocery sales. The company was formally warned in 2024 to improve compliance following supplier complaints.

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While the current investigation focuses on payment delays, the GCA has also raised concerns about delistings and supplier charges for marketing contributions, warning further inquiries could follow.

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Suppliers and stakeholders have until Aug 8, 2025 to submit confidential evidence. The GCA said all submissions will be anonymized and handled under British data protection laws.

Established in 2013, the GCA monitors the conduct of Britain's 14 largest grocery retailers. It has the authority to fine companies up to 1 percent of their British turnover for serious breaches.