Documents from the GameFly Court Case:
Excerpts from the Respondents Brief:
Petitioner GameFly is a company engaged in the online rental of video games. It distributes its rental games by mailing DVD’s to customers, who then return the DVD’s to GameFly in pre-addressed reply mailers. In 2009, it filed a complaint with the Commission under 39 U.S.C. § 3662, alleging that the Postal Service had unlawfully discriminated against GameFly by according preferential treatment to Netflix, another company that uses the mails to distribute rental DVD’s.
After lengthy evidentiary hearings, the Commission sustained GameFly’s allegations. It found that the Postal Service had failed to establish reasonable and legitimate reasons for providing GameFly less favorable treatment than Netflix, and that the Postal Service had unduly discriminated against GameFly, in violation of 39 U.S.C. 403(c).
To remedy the discrimination, the Commission ordered the Postal Service to make certain changes in the rates and surcharges imposed on DVD mailers. The Commission, however, did not adopt the remedies sought by GameFly. GameFly now appeals, essentially contending that the remedies ordered by the Commission do not adequately redress the Postal Service’s discriminatory conduct and are therefore arbitrary and capricious.