There's absolutely nothing wrong with a government tipping the playing field towards local companies.
If that doesn't make sense, an example could help when you want to buy a hypothetical WidgetBox.
Amazon WidgetBox: $100.00
Local WidgetBox: $102.00
After the added tax on Amazon, now you have no choice but to pay $102.00 for something you could previously pay $100.00 for. In business speak, it's call "screwing you" - in the article it's dressed up as "helping local businesses (screw you)".
It's far more complicated than you make it seem.
I don't see why ever-decreasing prices seems to be your metric for good here.
I voluntarily pay more for certain things because it is a more ethical choice in those cases.