In an interview with CNBS, former Walmart CEO Bill Simon noted that Amazon is “putting retailers out of business” by engaging in “anti-competitive” and “predatory” business practices.
Simon even suggested that the e-commerce behemoth should be split up through congressional action. He argued that Amazon has not been making any money from retail for decades. The goal is to put other retailers out of business, according to the former CEO.
It’s anti-competitive, it’s predatory, and it’s not right,
he told CNBS.
However, Amazon’s “predatory” tactics are not hurting big retailers like Walmart. Those will adapt. Small businesses and specialty chains like Toys R Us will be the worst hit. Simon believes that after Toys R Us’ bankruptcy, J.C. Penney is next.
The former executive explained that Amazon is getting those retailers out of business by selling below cost. This way, the online retailer is killing jobs and value in the retail sector.
Trump Has Recently Slammed Amazon Too
Simon’s criticism is a reaction to President Donald Trump’s own take at Amazon. On Thursday and Saturday, the nation’s chief executive criticized the Internet retailer for killing jobs and getting preferential treatment from the U.S. Postal Service.
Trump thinks Amazon has turned the USPS into its “Delivery Boy,” which has translated into billions of losses for the United States. Trump estimated that if the USPS raised rates, Amazon’s shipping costs would jump by $2.6 billion.
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!
— Donald J. Trump (@realDonaldTrump) March 29, 2018
Trump also accused Amazon of not paying all its taxes, which is partially true as the retailer cannot be forced to pay sales taxes if it doesn’t have a physical presence in a state. The decision is based on a Supreme Court decision from 1992 which affects only mail-order catalog companies.
Experts noted that the ruling is antiquated, as Amazon was not even around when it was issued. As one expert put it, in 1992 e-commerce “was zero; now it’s taken over the whole economy.”
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