What is the Sherman Antitrust Act?
The Sherman Antitrust Act is a federal law enacted in 1890 that prohibits any contract, combination, or conspiracy in restraint of trade or commerce. It is the first and most powerful antitrust law in the United States and has been used to protect competition and consumers from monopolies and unfair business practices. In Texas, the Sherman Antitrust Act applies to all entities that operate in Texas, regardless of their size. The purpose of the Sherman Antitrust Act is to promote competition by preventing companies from creating a monopoly or forming a cartel. Monopolies occur when a large company has such a large market share that it can set prices and exclude competitors from the market, leading to higher prices and reduced competition. This can hurt consumers, as they are not able to access cheaper products or services. Cartels, on the other hand, occur when two or more companies come together to prevent competition by fixing prices and dividing up markets. The Sherman Antitrust Act prohibits companies from forming monopolies and cartels, and also forbids certain unfair business practices such as price-fixing, bid-rigging, and exclusive dealing. This law also gives the Federal Trade Commission (FTC) the power to investigate and enforce antitrust laws. In Texas, the Texas Attorney General is also responsible for enforcing the Sherman Antitrust Act. If a company is found to be in violation of the law, they can be fined or even face criminal charges.
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