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Netflix Has Antitrust Suit Dropped

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Netflix Antitrust Dropped

Any win is a big win for Netflix right now, who recently let loose that they wouldn't be making a profit in 2012, and after a slew of stupid decisions that caused customer backlash.

There was a class action suit against the company, as it was alleged that a deal between Netflix and Walmart had been illegal a few years ago that dealt with online DVD rental when Blockbuster entered the race and it seemed like Amazon was about to as well. But Amazon didn't, and we all know what happened to Blockbuster, so 8 plaintiffs assumed that there was antitrust behavior that resulted in higher prices.

The judge thought otherwise, because there was no proof:

"The Promotion Agreement on its face discloses an agreement by both parties to undertake cross-promotional efforts with respect to each other's complementary online DVD rental and sales services, in light of Walmart's independent decision to exit the DVD rental market. Not only does the agreement expressly acknowledge the independent nature of Walmart's decision to exit the market, but it furthermore expressly states that Walmart is free to re-enter the same market. Under these circumstances, the court cannot agree that the agreement on its face reflects a blatant agreement to eliminate Walmart from the online DVD rental market as a form of market allocation."

Notice how we didn't really mention that Walmart was a part of this?

That's because they settled out of court so they wouldn't have to pay legal fees — and with this dropping, it looks like they wouldn't have lost that $27.25 million.

Whomp whomp.

[Image via AP Images.]

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2 comments to “Netflix Has Antitrust Suit Dropped”



  1. 1

    The only reason you use this particular image of the guys face is because it reminds you of the face you give off when you're taking it up the ass.



  2. 2

    when you say you all know what happened to blockbuster…what do you mean? blockbuster got all of the people netflix lost thus gaining. they also got bought out by dish network who is offering free streaming and online rentals through them for new members. get your facts straight, perez