United States Supreme Court struck down a 96-year old ban on minimum pricing agreements. This is giving the industry a chance to protect its brands at least to a certain degree. Even if this is not going to take place overnight, it is going to put somewhat of a damper on the cutthroat price wars in retail in the medium and long term. Of course, in the United States, skeptics are already asking themselves, which manufacturers are going to dare to dictate prices or set price limits to retailers such as Wal-Mart, Target and Macy’s, telling them which price limits they are not allowed to undercut.

It all depends on how strong brands with mandatory set prices are and on the bond between consumer and corresponding brands. And then there is another topic that should not be underestimated: Strong brands are that strong, because in general they have a weather-proof cost/performance ratio and they offer performance oriented profit margins, without which even a commercial enterprise in the United States cannot exist in the long run. Size does not matter in this context.

All in all, the ability to set minimum pricing agreements should be viewed positively by Americans, manufacturers, retailers and consumers. The development should be monitored closely. Maybe there are findings that are workable in other markets.