Sherman Antitrust Act

Real World Example

The Sherman Antitrust Act, passed in 1890, aimed to address the problems of monopolies and anti-competitive practices during the Industrialization era in the U.S. Large corporations like Standard Oil and Carnegie Steel had grown so powerful that they could control entire industries, stifling competition and exploiting consumers. The Act was important because it sought to protect free trade and ensure that smaller businesses could compete fairly, promoting a healthier economy. Today, the Sherman Antitrust Act still matters because it helps prevent companies from forming monopolies or engaging in unfair practices that limit consumer choices and raise prices. For example, if a few internet providers colluded to set high prices, the Act could be used to investigate and break up such behavior, ensuring you have affordable and varied options for internet service.