1890 Sherman Antitrust Act
The 1890 Sherman Antitrust Act was the first legislation passed by the United States Congress to limit monopolies and promote fair competition in the marketplace. It was named after Senator John Sherman, the bill’s sponsor, and was signed into law by President Benjamin Harrison on July 2, 1890.
The main purpose of the Sherman Antitrust Act was to prevent large corporations from engaging in anti-competitive practices, such as price-fixing, bid-rigging, and market allocation. It also sought to protect consumers from the harmful effects of monopolies, which can lead to higher prices, reduced choices, and lower quality products.
One of the most famous cases brought under the Sherman Antitrust Act was United States v. Standard Oil Co. in 1911, in which the Supreme Court ruled that Standard Oil was in violation of the act and ordered the company to be broken up into smaller, competing entities.
Since its passage, the Sherman Antitrust Act has been supplemented by other antitrust laws, such as the Clayton Antitrust Act of 1914 and the Federal Trade Commission Act of 1914, to further regulate business practices and promote fair competition in the marketplace.
Overall, the 1890 Sherman Antitrust Act remains an important piece of legislation in the United States, as it continues to shape the country’s antitrust policies and efforts to prevent monopolies and promote competition.
Examples of Violations of the Sherman Antitrust Act:
- Price-fixing agreements among competing companies
- Monopolization of a particular market by one company
- Collusion between businesses to restrict competition
Learn more about the 1890 Sherman Antitrust Act on Wikipedia.