PaulPA - 9:20 pm on Aug 10, 2007 (gmt 0)

For a good analysis of this case see this article [knowledge.wharton.upenn.edu] from U of Penn Wharton School.

For me, the key is that retailers, while stuck with selling at a certain price, will now have an incentive to offer other things that create value. For instance, they may offer more services to the customer since they may not be able to compete with low price.

While there had been some price maintenance in the past this decision certainly pushes the pendulum in the manufacturers' favor. Sure retailers may be able to challenge this on a case-by-case basis but that may require a protracted, costly legal action.