If Alibaba Group Holding Ltd (NYSE:BABA) had any hopes of bringing their extremely low cost e-commerce model to U.S., that hope is being set on fire by the alliance of Target Corporation (NYSE:TGT), Best Buy Co Inc (NYSE:BBY) and Home Depot Inc (NYSE:HD). If you want a peek into the whole drama, just switch on your television.
On CNBC David Faber reported the wrath that the online giant has fallen victim to.
“[…] Traditional retailers are taking aim at Alibaba Group Holding Ltd (NYSE:BABA). A lobbying group whose members include Target Corporation (NYSE:TGT), Best Buy Co Inc (NYSE:BBY) and Home Depot Inc (NYSE:HD) has produced an ad urging Congress to pass legislation granting states more authority to collect internet sales taxes […],” informed Faber.
The advertisement that accompanied Faber’s statement had an empty main street with shops and businesses gone out of business, and a Santa Claus slowly ringing bells, but there is no one to listen. An apocalyptic situation of sorts that has its roots in Alibaba Group Holding Ltd (NYSE:BABA)’s IPO, which is the very first image in the video.
With Christmas just around the corner, I think that Target Corporation (NYSE:TGT), Best Buy Co Inc (NYSE:BBY) and Home Depot Inc (NYSE:HD) have done a pretty good job with the video.
Faber expanded on the issue, citing that Amazon was also the centre of such criticism not too long ago, and the e-commerce player did have to succumb to the pressure eventually.
“[…] Alibaba Group Holding Ltd (NYSE:BABA) is denouncing the Ad, insisting it pays taxes according to the laws of the countries in which it does business. Of course Amazon itself faced the samee backlash for quite some time before it sort of came around, after it started housing all its distribution facilities in different states, in which it was forced to pay the sales tax, but it did benefit from not paying these sales tax in different places,” said Faber.
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