Yup, Amazon has been down this road before with other states and knows that the federal law prohibits taxing them if they don't have a sufficient nexus in that state. So, Amazon does what it has done before and cuts off California businesses. Like other states before it, California will experience reduced sales tax revenue while putting more California businesses out of business or at risk of going under.
Once again, California is proving itself to be a lost cause of a state and hell bent on driving itself over a cliff. More dumb laws made by dumb politicians. Don't even get me started on the new CA law allowing illegal immigrants to get college financial aid.