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Antitrust Class Action Brought against Netflix and Walmart |
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Written by Administrator
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Friday, 06 February 2009 22:29 |
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Class action filed 1/27/09 alleges Netflix and Walmart conspired to divide between them the markets for sales of new DVDs and online rental of DVDs, stifling competition and injuring consumers.
Filed January 27, 2009, Patras v. Netflix, Inc. et al. is an antitrust class action brought against Netflix, Inc., Wal-Mart Stores Inc. and Walmart.com USA LLC, alleging violations of the Sherman Antitrust Act. Filed in the United States District Court for the Northern District of California, the complaint alleges, on behalf of a nationwide class of Netflix subscribers, that the defendants entered into an illegal agreeement to divide between them the markets for online rental of DVDs and for sales of new DVDs. The complaint alleges that, pursuant to a 2005 agreement, Walmart agreed to withdraw from the rental market and Netflix agreed to forego its plans to enter the market for sales of new DVDs. The complaint alleges that, as a result, Netflix acquired and/or maintained monopoly power in the online DVD rental market, and was able to charge its customers more than would otherwise have been the case. The case seeks relief for class members, including treble damages. |
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Last Updated on Saturday, 07 March 2009 01:06 |