Online DVD Rental Antitrust Litigation
IN RE ONLINE DVD RENTAL ANTITRUST LITIGATION, NO. M:09-CV-2029 PJH (N.D. CAL.)
Abbey Spanier filed an antitrust class action in the U.S. District Court in the Northern District of California on behalf of Netflix subscribers nationwide against Netflix Inc., Walmart.com, and Wal-Mart Stores, Inc. The lawsuit alleges that these companies conspired to eliminate competition and violated antitrust laws in the U.S. market for online DVD rentals. According to the complaint in early 2005 Netflix, which dominates the online market for DVD rentals and Wal-Mart, an online rental competitor, divided up the market in order to reduce competition. The complaint alleges that Netflix subscribers paid artificially high prices for their Netflix subscriptions as a result of the anticompetitive agreements. Discovery is currently taking place in the case.