- Prohibited monopolies, combinations, and conspiracies that restrained interstate trade or commerce.
- Established the basic framework for antitrust law in the United States.
- Addressed trusts and other combinations of businesses that could potentially monopolize a particular industry.
- Did not specify any particular behavior as illegal, but left it to the courts to interpret what constituted a restraint of trade.
- Focused on the structure of the market rather than the conduct of individual businesses.
-Enforcement of Sherman Act was primarily a federal responsibility, with the government having primary authority to bring antitrust cases.
Clayton Antitrust Act (1914)
- Strengthened the Sherman Act and addressed some of its perceived shortcomings.
- Banned specific practices that were considered anticompetitive, such as price discrimination, tying arrangements, and exclusive dealing contracts.
- Focused more on the conduct of individual businesses rather than the overall market structure.
- Prohibited mergers and acquisitions that could substantially lessen competition or tend to create a monopoly.
- Increased the powers of the Federal Trade Commission (FTC) and gave it the authority to investigate and prosecute antitrust violations, alongside the Department of Justice.
- Introduced the concept of "reasonable" restraint of trade, recognizing that not every restraint of trade is illegal.
- Empowered private parties, such as individuals and companies, to bring antitrust lawsuits to seek damages or injunctions against anticompetitive practices.