Amazon.com and Toys R Us fall out
Online giant seeks to end partnership
Amazon.com is seeking to dissolve its partnership with Toys R Us as both retailers claim the other has violated the terms of an online selling partnership.
Toys R Us, which has a co-branded store on the online retailer’s US website, launched a legal action against Amazon.com last month. The toy retailer argued that Amazon has breached an exclusivity deal over products that their deal says can only sold by Toys R Us.
Responding to the lawsuit, Amazon is seeking to dissolve the partnership, saying there has been a ‘chronic failure’ by Toys R Us to adhere to their contract.
Amazon.com is arguing that it is entitled to at least $750 million in compensation for lost shipping revenue and other costs. It argues that Toys R Us has demonstrated a “chronic unwillingness or inability” to meet a contractual obligation to offer a comprehensive selection of toys, games and baby products.
In its lawsuit, Toys R Us said it paid $200m to Amazon over four years in order to keep competitors off the site. The original deal saw Toys R Us drop its own online toysrus.com offer to sell exclusively through Amazon.
