The US Court of Appeals for the Ninth Circuit stresses the importance for Sherman Act litigants to support their claims of antitrust injury-in-fact with market facts (Netflix)

Ninth Circuit Affirms Dismissal of Netflix Antitrust Suit* Last Friday, the Ninth Circuit affirmed the dismissal of a multidistrict class action brought by Netflix subscribers who claimed the company conspired with Walmart to dominate the online DVD sales and rental markets. In 2005, Netflix and Walmart entered into a promotion arrangement whereby Walmart agreed to transfer its DVD-rental subscribers to Netflix in exchange for 10% of the revenue and a $36 payment for each subscriber Netflix gained through referral. Netflix also agreed to promote Walmart’s DVD sales in exchange for the referrals. Antitrust lawsuits were subsequently filed against both companies. Walmart settled with the plaintiffs for $27 million. In a separate opinion issued on

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Authors

  • Siemens (New York)
  • Patterson Belknap Webb & Tyler (New York)

Quotation

Deirdre McEvoy, Nicole Paschal, The US Court of Appeals for the Ninth Circuit stresses the importance for Sherman Act litigants to support their claims of antitrust injury-in-fact with market facts (Netflix), 27 February 2015, e-Competitions February 2015, Art. N° 72002

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