The companies hooked up in 2000 under an agreement which saw Amazon selling Toys R Us products through its online store. Toys R Us believed the deal was exclusive, Amazon did not and the lawsuit followed in 2002.
The ruling means that Toys R Us will now be able to establish its own retail website, though the emergence of low cost competitors such as Wal-Mart means the endeavor is in no way guaranteed to succeed.
For its part Amazon had previously suggested that severing ties with the toy seller could cost it around $50 million in income annually, a bitter pill to swallow given that Amazon always argued that its decision to feature other retailers was driven by Toy R Us’ failure to offer its leading brands on the site, thus harming sales.
