District Court Dismisses Antitrust Claims against Netflix
On November 22, 2011, the U.S. District Court for the Northern District of California dismissed all claims brought against Netflix by a class of subscribers that had accused the company of conspiring with Wal-Mart to restrain competition in online DVD rental services. Wilson Sonsini Goodrich & Rosati represented Netflix in connection with the matter.
Judge Phyllis Hamilton granted Netflix's motion for summary judgment to resolve all claims against the company, arguing that the class of subscribers had failed to prove that the agreement between Netflix and Wal-Mart, which had outlined cross-promotional efforts, was harmful to Netflix subscribers in any way. The plaintiffs had alleged that Netflix had worked in concert with Wal-Mart by agreeing not to sell DVDs, and that in return, Wal-Mart had agreed not to enter the online DVD rental market. In September, Judge Hamilton approved a $27.25 million settlement between Wal-Mart and the plaintiffs.
For more information, please refer to the court order.