Court rules Netflix receives unfair advantage in GameFly postal dispute
The US Court of Appeals ruled today that Netflix does receive an unfair advantage from the U.S. Postal Service in how it handles DVDs shipped through the system. Reuters reports the court is leaving it up to the Postal Regulatory Commission to create an equitable solution.
Netflix receives preferential treatment and specially designated containers due to the volume of mail it sends through the system. Judge David Sentelle noted, “Rather obviously, this is not without cost to the postal service. Nonetheless, the service provides it to Netflix free of charge.”
The latest ruling is a continuation of the multi-year dispute by GameFly, which claims it’s had to make adjustments that cost millions because the postal service won’t give the game rental service the same treatment.
Update: GameFly has sent us an official statement regarding today’s ruling. Posted in full after break.Continue reading Court rules Netflix receives unfair advantage in GameFly postal disputeCourt rules Netflix receives unfair advantage in GameFly postal dispute originally appeared on Joystiq on Fri, 11 Jan 2013 14:15:00 EST. Please see our terms for use of feeds.
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