Feb. 11, 2009
Wal Mart, Netflix Class Action Filed in Charleston Federal Court
Complaint Alleges DVD Rentals, Sales Fixed
By Tony Rutherford
Huntingtonnews.net Reporter
Charleston, WV (HNN) – An anti-trust possible class action suit has been filed by a South Charleston couple charging that Walmart Stores, Netflix and Walmart.com agreed to “divide the markets for sales and online rentals of DVD’s in the United States in order to avoid competition, and to monopolize and illegally restrain trade in at least the Online DVD Rental Market.”
The complaint, which is similar to several filed across the U.S., alleges that Wal-Mart agreed to exit the online DVD rental market and Netflix agreed not to sell new DVD’s. Based on the complaint, Netflix leads the online DVD rental market with 75%. (Blockbuster has approximately 25%.) “It has the power to control prices or exclude competition in this market,” the complaint states.
After executives for the two corporations met, they allegedly arrived at an agreement. Various publications headlined the reports as “Wal Mart and Netflex: An Alliance,” “Wal Mart and Netflix Scratch Each Other’s Back,” “Truce in DVD Rental Wars,” and “WalMart Loves Netflix and vice versa.”
The counts of the complaint allege violation of the Sherman Act by illegal market allocation, conspiracy to monopolize the online DVD rental markets, Netflix monopolized online DVD rental market, and Netflix attempted to monopolize the online DVD rental market.
You can download a copy of the complaint in pdf form by clicking here.
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Wal Mart, Netflix Class Action Filed in Charleston Federal Court
Complaint Alleges DVD Rentals, Sales Fixed
By Tony Rutherford
Huntingtonnews.net Reporter
Charleston, WV (HNN) – An anti-trust possible class action suit has been filed by a South Charleston couple charging that Walmart Stores, Netflix and Walmart.com agreed to “divide the markets for sales and online rentals of DVD’s in the United States in order to avoid competition, and to monopolize and illegally restrain trade in at least the Online DVD Rental Market.”
The complaint, which is similar to several filed across the U.S., alleges that Wal-Mart agreed to exit the online DVD rental market and Netflix agreed not to sell new DVD’s. Based on the complaint, Netflix leads the online DVD rental market with 75%. (Blockbuster has approximately 25%.) “It has the power to control prices or exclude competition in this market,” the complaint states.
After executives for the two corporations met, they allegedly arrived at an agreement. Various publications headlined the reports as “Wal Mart and Netflex: An Alliance,” “Wal Mart and Netflix Scratch Each Other’s Back,” “Truce in DVD Rental Wars,” and “WalMart Loves Netflix and vice versa.”
The counts of the complaint allege violation of the Sherman Act by illegal market allocation, conspiracy to monopolize the online DVD rental markets, Netflix monopolized online DVD rental market, and Netflix attempted to monopolize the online DVD rental market.
You can download a copy of the complaint in pdf form by clicking here.
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Make HNN Your Homepage (IE Users Only)
