Big business won in Seattle this past week.

Back in May, Seattle tried to implement a "head tax," which would be levied against big businesses, to raise funds earmarked for fighting homelessness amidst the city's ongoing housing crisis. Seattle rents have risen exponentially in the past decade as workers have flocked to its booming tech sector. While who bears responsibility for the crisis is a matter of some debate, there is no doubt that the crisis exists. The city's homeless population is the third largest in the country, just after the larger metropolises of New York and Los Angeles.

City council members initially hoped to collect $75 million by taxing major companies $500 per employee. After they dialed the proposed tax down to $275 per employee, Amazon, which employs roughly 40,000 people in the Seattle area, signaled that it would not fight the tax. The council unanimously approved the tax bill, and on May 16, Seattle Mayor Jenny A. Durkan signed the tax into law, saying that it would help "move people off the street and into safer places," "clean up the garbage and needles" in parks and communities, and provide resources like job training and health services.

But before the bill could go into effect, Amazon (AMZN  ) donated $25,000 to No Tax On Jobs, a committee created to repeal the head tax. Other major area employers like Starbucks (SBUX  ) also contributed. Amazon also threatened to halt construction on two huge towers it is currently developing in the city if the tax was not overturned. The referendum campaign worked, and this past Tuesday the council voted 7-2 to revoke the tax.

Some have criticized Amazon for its resistance to the tax. The company would have had to pay roughly $12 million a year - a relative pittance for a company with a revenue of $178 billion in 2017. Amazon CEO Jeff Bezos is the richest man in the world, earning an estimated $11.5 million every hour.

But Amazon and other local businesses of various sizes felt that the tax posed an undue burden on job creators. Amazon applauded the repeal, with Amazon vice president Drew Herdener releasing a statement saying it was "the right direction for the region's economic prosperity," and reiterating the company's commitment to the fight to end homelessness. Seattle's Chamber of Commerce also hailed the repeal as a "breath of fresh air."

Cities around the US are currently competing to attract Amazon for its second headquarters facility. However, the latest repeal in Seattle exposes the control Amazon may exert on its next city, and may act as a warning sign for all other potential candidates.