A new Supreme Court ruling regarding minimum retail prices could have a dramatic impact on e-commerce. The Court ruled last week that manufacturers can set a minimum retail price that retailers must use. That rolls back an anti-trust rule that’s been in place since the early part of the 20th Century. It could have the effect of eliminating the ability of online retailers to compete with brick-and-mortar outlets based on price.
Many e-commerce outlets drastically discount some items in order to lure shoppers. Taking away that tool could cut the number of retailers online, eliminating those that can’t compete with the larger outlets that have higher profit margins or a wider array of products to boost profits.