What is the Sherman Antitrust Act?

The Sherman Antitrust Act is a federal law that was passed in 1890 intended to help protect consumers from anticompetitive business practices. The law, which is administered by the Federal Trade Commission, was created to prevent businesses from forming cartels and monopolies that would use their power to drive prices up and keep market competition at bay. The Sherman Antitrust Act applies to any company that operates on a multi-state or national level. The act prohibits the formation of monopolies, price fixing, or use of other anticompetitive tactics that limit competition. Additionally, companies must avoid making arrangements that would limit their ability to compete. Though the Sherman Act applies to all states in the United States, each state can add its own unique antitrust law that can be more strict than the federal law. In Kansas, for example, the state has additional laws that forbid anything that has a tendency to lessen competition. Violations of the Sherman Act can result in criminal and civil penalties and possibly even the breakup of the offending companies. Companies that are found to be in violation of the law can face federal prosecution and fines. In summary, the Sherman Antitrust Act is a federal law that is intended to stop businesses from using anticompetitive practices that limit competition and harm consumers. As this is a federal law, every state has its own laws in addition to the Sherman Act that address antitrust issues. Violations of the Sherman Antitrust Act can result in both criminal and civil penalties.

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What is the Sherman Antitrust Act?

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