Netflix Gets Improper Favoritism at Post Office, Court Says
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Netflix Inc., the largest U.S. mail-order movie-rental service, got special treatment from the U.S. Postal Service, which improperly discriminated against other mail-order companies, a federal appeals court ruled.
In a challenge filed by GameFly Inc., the video-game rent-by-mail service, a three-judge panel in Washington today ordered the Postal Regulatory Commission to cure “all discrimination” against the company or explain why treating GameFly different from Netflix is reasonable. The ruling may lead to changes in the way Netflix movies are handled by the postal service.