Court allows Redbox to proceed in Universal antitrust suit

MUMBAI: The United States District Court for the District of Delaware has allowed Redbox to pursue the Antitrust suit against Universal Studios Home Entertainment.

The court has denied Universal Studios Home Entertainment’s motion to dismiss the antitrust lawsuit filed by Redbox.

"The Federal Court’s decision marks an important step forward in our effort to protect consumers’ right to convenient, affordable access to new release DVDs at redbox locations nationwide. We appreciate the Court’s thoughtful review of this issue and look forward to pursuing our claim and protecting our consumers’ rights," said Redbox president Mitch Lowe.

The antitrust claim came from Universal last year instructing its distributors to hold back the studio’s DVDs from Redbox. Universal has argued in court papers that it could legally make such a move. Redbox filed its lawsuit against Universal in October.

"Universal is pleased that the Court today dismissed two of the three claims asserted by Redbox and appreciates that the claims made by Redbox are now reduced significantly. As was the case prior to the Court’s ruling, Universal maintains that its actions have been consistently lawful, and will vigorously defend its right to make valid business judgments," a Universal spokesperson said.

Recently studios like Lionsgate and Sony Corp. have entered into agreements with Redbox that make their DVDs readily available.