updated 7/5/2006 1:00:23 PM ET 2006-07-05T17:00:23

Amazon.com Inc. on Wednesday announced the launch of its new toy and baby stores, marking the Internet retailer's return to these markets since its partnership with Toys 'R' Us Inc. was dissolved earlier this year.

In addition to Amazon's own inventory, the site also offers items listed by merchants including Target, eToys, Discovery Channel Store and Babystyle.

In early June, a New Jersey appellate court denied Amazon's effort to halt the breakup of its online partnership with Toys 'R' Us.

Back in 2004 Toys 'R' Us sued Amazon.com, charging that the Internet company violated exclusivity rights by allowing others to sell certain items on the Amazon.com Web site. Amazon countersued, seeking to dissolve the partnership, citing "chronic failure" by Toys 'R' Us to keep items in stock and to otherwise adhere to their contract.

In March of this year, a state judge ruled that Amazon.com breached its 2000 deal, and allowed the companies to sever their partnership. Toys 'R' Us has since announced that GSI Commerce Inc. and Exel will handle its toysrus.com and babiesrus.com sites, which previously were run by Amazon.com.

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