June 21, 2018 / 2:55 PM / 5 months ago

Online retailers slide after U.S. court ruling on sales tax

FILE PHOTO: The logo of Amazon is pictured inside the company's office in Bengaluru, India, April 20, 2018. Picture taken April 20, 2018. REUTERS/Abhishek N. Chinnappa/File Photo

** Shares of online retailers take a hit after U.S. Supreme Court allows states to force these companies to collect sales tax

** Amazon down ~1 pct, Wayfair off 3.6 pct, Overstock.com 2 pct, Etsy 4.3 pct, eBay ~2 pct and Shopify 3.4 pct

** Amazon already collects state and local sales taxes

** The justices, in a 5-4 ruling against Wayfair, Overstock and Newegg Inc, overturned a 1992 Supreme Court precedent that had barred states from requiring businesses with no “physical presence” in that state, like out-of-state online retailers, to collect sales taxes

** The S&P 500 retailing index also slipped ~0.8 pct as AMZN shares weighed down the index

Reporting by Shreyashi Sanyal in Bengaluru

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