Toys R Us No Longer in Mood to Play
By George Anderson
Considering all the public (and it can be assumed private) acrimony between the parties, it seems almost surreal that Amazon.com is looking to have its contract reinstated with
Toys R Us.
Last month, New Jersey Chancery Court Judge Margaret Mary McVeigh ruled that Toys R Us could end its 10-year deal with Amazon because the online seller had violated an exclusivity
agreement with the toy retailer. Toys R Us paid Amazon $50 million a year to maintain exclusivity with the online giant.
Amazon is appealing to a higher court and has asked Judge McVeigh to put a stay on her ruling until the legal process plays out.
Last week, the judge said she would approve a stay, according to The Seattle Times, if Amazon removed all competitors to Toys R Us from its site.
“(Toys R Us) would be provided with that indefinable brand protection it sought, and Amazon would continue to maintain ‘the largest forum in the world for the sale of these products,’
” she wrote.
Amazon outright rejected the proposal, according to the judge.
Moderator’s Comment: Would it be in the best interests of ToysRUs.com to reinstate its deal with Amazon.com if somehow the company was willing to remove
toy competitors from its web site? When business relationships such as these go south, can they be repaired without a change in the people running the companies? –
George Anderson – Moderator