Volume IX

Issue : 13: March 10, 2011

• Amazon.com Threatens to Cut Ties with its California Affiliates
• Apple Defends Microsoft's 'App Store' Trademark Challenge
• States Make Play for Web Gambling
• BC Court of Appeal Sides with Keyword Advertiser
• No Government Veto for New Top Level Domains
• Social Media Networks Assist Defendant in Personal Injury Case
• Huawei Wins Injunction against Motorola
• Libya's Internet hit with Severe Disruptions

Home > Volume IX > Issue 13: March 10, 2011 > Amazon.com Threatens to Cut Ties with its California Affiliates

Amazon.com Threatens to Cut Ties with its California Affiliates

On the heels of closing its Texas distribution center, Amazon.com Inc., the world’s largest online retailer, has threatened to sever ties with more than 10,000 of its affiliates in California as a result of a dispute with the state over its proposals aimed at forcing Amazon to collect taxes from Internet purchases.

Amazon’s affiliates place ads for Amazon on their own websites.  When customers click through and buy items, the affiliates receive compensation.  Should Amazon end its affiliates’ program, California residents can still shop at Amazon.com, though state businesses would miss out on the ad sales, potentially hurting tax revenue.

This is not the first time that this issue has arisen.  In 2009, Amazon was set to terminate its affiliate relationships in California until Governor Arnold Schwarzenegger stepped in to veto a proposed bill which would have required Amazon to collect sales taxes on online purchases.

For additional information, visit:
http://tinyurl.com/4jj8cg6