The challenges that are being faced by Amazon.com Inc. in the Presidentship US President Donald Trump, and because of the tax overhaul bill last year, the largest e-retailer of the world has brought in new advisors in its ranks as it has simu7ltaneously severed ties with Washington’s top lobbying firms.
This development took place about a week before an aggressive tweet from Trump targeting the company had sent its share prices tumbling. Top of Form
Trump’s allegations against the e-retailer included charge that the company piggybacks on the US Postal Service unfairly to get its deliveries done in the country, hurts other retailers and refrains from paying up enough state and local taxes.
Trump tweeted: “I have stated my concerns with Amazon long before the Election. Unlike others, they pay little or no taxes to state & local governments, use our Postal System as their Delivery Boy (causing tremendous loss to the U.S.), and are putting many thousands of retailers out of business!”
According to media reports quoting sources, Akin Gump Strauss Hauer & Feld LLP, the law firm generates more revenues through lobbying than any other K Street operation and Squire Patton Boggs are the two firms that Amazon has severed relations with.
Trent Lott, the former Senate majority leader, was part of the lobbying team at Squire Patton.
Sources further said that Josh Holly of Holly Strategies Inc. and Paul Brathwaite of Federal Street Strategies LLC have bene hired by the company instead.
Airbnb Inc. and Oracle Corp are the two places where both have previously worked in.
“It’s commonplace for us to work with different consultants based on evolving business priorities,” Amazon said in a statement.
Rather, the business model of the company gives growth opportunities to numerous small businesses who are able to sell their products on its popular web store, and the company has been able to create many jobs from the huge investments in billions of dollars that it makes in new warehouses and offices, the company has said.
There has however been a landscape in Washington that has not been conducive for the company.
Amazon CEO Jeff Bezos, who also owns The Washington Post, the newspaper that has been very critical of Trump’s administration skills and decisions, has been at the receiving end of repeated tweets of Trump.
Coupled with this are calls by outside groups demanding investigations in possible anti-competitive practices by the company because the company has grown too big.
According to their most recent federal lobbying disclosures, Amazon had been helped in tax matters by both Akin Gump and Patton Boggs.
Amazon has bene lobbying with government agencies more than any other tech company.
State sales taxes and copyrights were the set of issues that the company had been focused on in its lobbying efforts for years. But as the company now is venturing into the areas like drone delivery, could services for the Defense Department and getting into acquisitions, the scope for lobbying has widened.
(Adapted from SCMP.com)