What is the Sherman Antitrust Act?

The Sherman Antitrust Act is a federal law in the United States that prohibits businesses from engaging in anti-competitive behavior, such as price-fixing, price discrimination, or monopolization. It was passed in 1890 and is one of the most important laws governing competition and commerce in the United States. The Sherman Antitrust Act applies to all states, including California. Under the Sherman Antitrust Act, companies cannot form cartels to fix prices, divide markets, or limit production. Price fixing means that companies agree to charge the same price for a good or service. Price discrimination is when companies charge different prices for the same product. And monopolization occurs when a company gains control over a certain market. The Sherman Antitrust Act also prohibits forming trusts, which are companies or organizations that are created to control an industry. It also stops companies from engaging in practices that would lead to the creation of a monopoly. The Sherman Antitrust Act is enforced by both the federal government and the states. In California, the Federal Trade Commission (FTC) has the authority to investigate complaints of anti-competitive behavior and to bring enforcement actions when it finds a violation. The California Attorney General also has the power to investigate and take enforcement action against anti-competitive practices. The FTC also partners with the state attorneys general to investigate and prosecute antitrust violations.

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What is the Sherman Antitrust Act?

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