The U.K. watchdog responsible for regulating the trading relationship between retailers and suppliers has warned Amazon (AMZN) it could face an🐈 investigation unless it improves its compliance with the Groceries Supply Code of 🍌Practice.

The Groceries Code Adjudicator wrote the latest survey of grocery suppliers found that just 47% felt Amazon consistently or mostly complies with the code, down from 59% from 2023. The GCA noted that Amazon has to make “swift and comprehensive action to demonstrably comply with the code."

Adjudicator Ma𝓡rk White said the company must ensure that suppliers understand the steps it has taken in response, and make any further changes🐭 needed to ensure it is following the code.

He said that he "will not hesitate to launch a formal investigation if appropriate and necessary to ensure Amazon is treating its suppliers fairly and lawfully.”

In response to Investopedia, Amazon said it takes the code seriously and has "introduced robust compliance procedures for our suppliers." The company added that it will be making further changes "with faster time-frames to resolve more types of financial disputes, as well as strengthened account management support for smaller suppliers."

Shares of Amazon lost ground Thursday as part of a broader big-tech stock sell-off. Despite the decline, 🧜the stock is up nearly 30%𝓰 so far in 2024.