Toysrus.com, the internet subsidiary of Toys 'R' Us, sued
Amazon.com in May. It alleged that Amazon.com had violated an
agreement signed in 2000 stipulating that Toysrus.com would be the
only authorised seller of toy, game and baby products on the
Amazon.com platform – a deal for which Toysrus.com is reported to
have agreed to pay $200 million.
The lawsuit accused Amazon.com of breaching the exclusivity part
of the deal. In early June, Toysrus.com won an injunction,
prohibiting Amazon.com from allowing other sellers to use the site
for the sale of toys, games and baby products.
Amazon.com then filed its own lawsuit, asking the court to end
the agreement and to award it $750 million in damages. According to
press reports, it accused Toysrus.com of a "chronic failure" to
comply with the contract terms by failing to have sufficient
products in stock, and in failing to choose the top-selling
toys.
In July, Amazon.com went to court again, arguing that the
injunction would prevent it launching a new graphical user
interface service in September, designed to allow smaller retailers
to advertise their own products on the Amazon.com site.
As a result, according to the Associated Press, Judge Margaret M
McVeigh eased the injunction a little – allowing the launch to go
ahead on the condition that users did not sell those products
offered by Toysrus.com on an exclusive basis.
The Associated Press now reports that Judge McVeigh has fined
Amazon.com $18,000 for violating a court order, after the toy
company complained that 46 products had been listed on the Amazon
web site in breach of the exclusivity agreement.
The case is due to go to trial on 16th March.
