Sherman Antitrust Act: Key Points, Impact, and Enforcement

The Sherman Antitrust Act, proposed by Ohio Sen. John Sherman and passed in 1890, is designed to keep the U.S. economy fair by preventing monopolies and restricting collusion that manipulates prices. The law is overseen by the U.S. Department of Justice and is aimed at promoting competition while regulating interstate commerce. It was Congress’ first major response to the use of trusts to control key industries, outlawing contracts, conspiracies, and other practices that restrain trade and create monopolies. The act also provides for civil and criminal penalties and includes enforcement tools against activities such as price-fixing, market division, and bid-rigging. The article notes later antitrust frameworks like the Clayton Act followed it.