Online retailers such as Amazon, Apple and Amazon Prime are facing a crisis of confidence as their businesses continue to fall behind.
In a rare public acknowledgement, the Canadian government on Wednesday announced it was shutting down Amazon’s website and cutting off access to its Kindle and App Store businesses.
“We’re closing these businesses for good,” Prime Minister Justin Trudeau said at a news conference.
He said the move was a sign of Canada’s economic strength.
Prime Minister Trudeau and Prime Minister Joe Clark talk to the media about Canada’s upcoming visit to Europe, in Toronto on Thursday, April 6, 2021.
The prime minister said Amazon’s business would continue to operate but that the Canadian company would “focus on delivering better services.”
Amazon, the world’s largest online retailer, had about 2.5 million retail outlets across the world.
The company had a $16.5 billion market value, including $3.6 billion in Canada.
It operates in more than 100 countries, including Canada.
In the United States, Amazon also sells some products.
The move comes amid an ongoing crisis for online retailers.
Last month, Amazon’s shares fell 2.6 per cent as investors worry the company could collapse.
The government is expected to announce the closure of Amazon by the end of the year, and cut off access for the entire Amazon business in 2019.
The moves come amid a sharp slowdown in the online sales of the company, which has lost $4 billion this year, according to the company’s financial results released last month.
It has said the business will remain closed for a year or longer.