Sherman Antitrust Act

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Sherman Antitrust Act summary

Sherman Antitrust Act

Q: What is the purpose of the Sherman Antitrust Act?

The Sherman Antitrust Act was enacted in 1890 to curtail combinations of power that interfere with trade and reduce economic competition. It outlaws both formal cartels and attempts to monopolize any part of commerce in the United States.

Q: Who was the Sherman Antitrust Act named for?

The Sherman Antitrust Act was named for U.S. Senator John Sherman , an expert on the regulation of commerce. It is also sometimes called, simply, the Sherman Act. Sherman also played a leading role in the establishment of the national banking system.

Q: What are the main provisions of the Sherman Antitrust Act?

The Sherman Antitrust Act comprises two main provisions that prohibit interferences with trade and economic competition and that make illegal the attempt to monopolize any part of trade or commerce. These provisions are enforceable by the U.S. Department of Justice.

Q: What is the “rule of reason” interpretation of the Sherman Antitrust Act?

The U.S. Supreme Court applied the “rule of reason” interpretation to the Sherman Antitrust Act in 1920 to specify that only “unreasonable” restraint of trade is unlawful, allowing large firms more latitude. The interpretation was reversed in 1945, and the prohibition of monopolies was subsequently periodically enforced, including the breakup of the American Telephone and Telegraph Company in 1984.

United States [1890]

Written and fact-checked by The Editors of Encyclopaedia Britannica

Last Updated: Dec 23, 2024 • Article History

Quick Facts

Date:: 1890

Participants:: United States

Key People:: George Franklin Edmunds; Benjamin Harrison; John Sherman; Edward Douglass White

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What is the purpose of the Sherman Antitrust Act?

Who was the Sherman Antitrust Act named for?

What are the main provisions of the Sherman Antitrust Act?

What is the “rule of reason” interpretation of the Sherman Antitrust Act?

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Sherman Antitrust Act, first legislation enacted by the U.S. Congress (1890) to curb concentrations of power that interfere with trade and reduce economic competition. It was named for U.S. Sen. John Sherman of Ohio, who was an expert on the regulation of commerce. One of the act’s main provisions outlaws all combinations that restrain trade between states or with foreign nations. This prohibition applies not only to formal cartels but also to any agreement to fix prices, limit industrial output, share markets, or exclude competition. A second key provision makes illegal all attempts to monopolize any part of trade or ...(100 of 604 words)

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