Government Rules USPS Treated GameFly Unfairly

Putting an end to a two-year dispute between GameFly and the U.S. Postal Service, the Postal Regulatory Commission ruled the USPS has given services such as Netflix and Blockbuster preferential treatment over its own discs.

GameFly contended that while Blockbuster and Netflix envelopes were manually removed from bulk mail at no charge and not processed through machines, GameFly discs suffered the machine treatment, which often contributed to complaints of broken or missing discs.

GameSpot reports that the ruling will make the USPS level the playing field by coming up with two rate categories for Netflix/GameFly-like disc rental services. Under the new system, GameFly won’t have to pay a surcharge for hand-sorting or excessive weight of envelopes.

GameFly wins in USPS dispute [GameSpot]