It's legit, and it's the latest twist in a legal saga that
started two years ago.
In May 2005, Wal-Mart and Netflix struck a pact: Wal-Mart
would scrap its struggling DVDs-by-mail subscription service and instead
encourage its customers to sign on with Netflix. In return, Netflix agreed to
promote Wal-Mart's DVD sales business.
But in 2009, a group of Netflix subscribers banded together
and filed a lawsuit charging the two companies with collusion. The gist of
their complaint is that the two companies agreed to carve up the market and
stay off each others' turf: DVD rentals for Netflix and DVD sales for Wal-Mart.
The deal helped Netflix entrench itself as the market's dominant player and
raise its subscription prices, the lawsuit alleges.
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