In a program, CNBC’s David Faber reported that Alibaba Group Holding Ltd (NYSE:BABA) is under threat from local business giants like Target Corporation (NYSE:TGT) and Home Depot Inc (NYSE:HD). The local business and store chains are lobbying in order to empower states to collect more taxes. For this, they are trying to influence congress in order to pass a legislation. These lobbyists are not doing their campaign on the back end rather they have produced an ad in which, it is stated that Alibaba Group Holding Ltd (NYSE:BABA) is a big Chinese ecommerce company whose IPO was the biggest in the US history. Now, the company is starting its operations in the US. This would “disseminate” the local brands like Target Corporation (NYSE:TGT) and Home Depot Inc (NYSE:HD), the ad purports.
The ad further shows the possible closure of the main street. It shows that the there is no one on the main street for shopping and stores are closed. The ad incites to “Tell Congress” to close the online tax loophole before it closes the main street. This is a clear and direct campaign against Alibaba Group Holding Ltd (NYSE:BABA), which has just launched in the US and challenging the ecommerce and retail tycoons like Target Corporation (NYSE:TGT) and Home Depot Inc (NYSE:HD).
According to Faber, Alibaba Group Holding Ltd (NYSE:BABA) has responded this ad and said that the company pays taxes according to the laws of the countries and states it operates in. He said that Amazon also faced the similar problem when it started its operations years ago in different states. He said that the fight is not easy to win. Alibaba Group Holding Ltd (NYSE:BABA) is the e-commerce giant which holds 80% of the market in China. Target Corporation (NYSE:TGT) and Home Depot Inc (NYSE:HD) will have to put a fight for a long time to get their demands satisfied.
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