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Amazon fined $18,000 for violating a court order

March 8, 2005

According to the Associated Press, Amazon has been fined $18,000 for violating a court order, in a dispute with

It follows a lawsuit filed last year by the toy company, which accused of breaching an exclusivity agreement., the internet subsidiary of Toys 'R' Us, sued in May. It alleged that had violated an agreement signed in 2000 stipulating that would be the only authorised seller of toy, game and baby products on the platform – a deal for which is reported to have agreed to pay $200 million.

The lawsuit accused of breaching the exclusivity part of the deal. In early June, won an injunction, prohibiting from allowing other sellers to use the site for the sale of toys, games and baby products. 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 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, 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 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 on an exclusive basis.

The Associated Press now reports that Judge McVeigh has fined $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.


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