Overview
The Sherman Antitrust Act, enacted in 1890, is a foundational law in U.S. economic policy aimed at preventing monopolies and promoting competition. It prohibits practices that restrain trade and seeks to ensure that consumers benefit from a competitive marketplace. Over the years, the Act has been t...
Key Terms
Example: A company that controls the entire supply of a product.
Example: The Sherman Act is an antitrust law.
Example: Two coffee shops competing for customers in the same area.
Example: Regulating prices to prevent price gouging.
Example: The FTC investigates unfair business practices.
Example: Two companies agreeing to sell a product at the same price.
Related Topics
Clayton Antitrust Act
An extension of antitrust laws that addresses specific practices not covered by the Sherman Act.
intermediateFederal Trade Commission
The agency responsible for enforcing antitrust laws and protecting consumer interests.
intermediateMonopolistic Competition
A market structure where many firms compete with similar but not identical products.
intermediateKey Concepts
monopolycompetitionantitrust lawsmarket regulation