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Antitrust & Trade Reg.

May 7, 2010

Netflix and Wal-Mart Accused of Illegally Dividing DVD Market

In the fall of 2004, Netflix Inc. chief executive Reed Hastings asked his counterpart at Wal-Mart.com to lunch.

By Rebecca Beyer

Daily Journal Staff Writer

OAKLAND- In the fall of 2004, Netflix Inc. chief executive Reed Hastings asked his counterpart at WalMart.com to lunch. A few months later, the two shared a dinner, and in May 2005, their respective companies announced an agreement that shook up the online DVD rental market: Wal-Mart would withdraw, offering its customers the option of transferring to Netflix, and Netflix would promote Wal-Mart'...

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