Not long after Redbox’s most recent filing in its fight against the Hollywood Three comes Fox’s latest salvo. In a court filing dated February 4, 20th Century Fox Home Entertainment claims that Redbox has failed to prove that Fox violated antitrust laws by instructing its distributors to put in place a 28-day new release embargo. Fox also asserts that Redbox has been unable to prove that the studio and retailers entered an agreement to limit sales of new titles, and requested oral arguments for its motion to dismiss the case. Here’s an excerpt from Fox’s filing:
“Redbox’s pleadings show that Fox and Redbox negotiated over Redbox’s direct procurement of newly released Fox DVDs but did not agree on price. . . Without any agreement, Fox had every right to change its distribution policy to stop all sales of Fox DVDs to Redbox.”
Fox also uses Redbox’s continued growth in the face of determined studio opposition as a refutation of Redbox’s allegations of anticompetetive activities. Says Fox:
“A company experiencing explosive growth in the face of alleged ‘anticompetitive’ conduct cannot plausibly allege injury. . . A company alleging a concerted ‘boycott’ cannot plausibly allege injury where it claims elsewhere that the boycott is ineffective. And a company that admits it competes with a host of other forms of entertainment cannot plausibly allege a market limited to individual new-release DVDs.”
It’s ugly and getting uglier, Insiders, and Fox is obviously not going to conced any ground willingly. What do you think will come of this latest filing? What effects, positive or negative, will Redbox’s pending Q4 financials have on this case?
(via Home Media Magazine)