Sherman Antitrust Act of 1890

Definition

This federal law was passed to prohibit certain business activities that federal government regulators deemed to be anti-competitive. It aimed at promoting fair competition for the benefit of consumers.

Related terms

Monopoly: A monopoly is when a single company or group controls all or nearly all of the market for a given type of product or service. The Sherman Antitrust Act sought to prevent these types of situations.

Trusts: Trusts are large business entities formed with intent to monopolize business, control prices or restrict trade. They were a primary target of the Sherman Antitrust Act.

Robber Barons: As mentioned earlier, these businessmen often used their wealth and power to create monopolies and trusts, which the Sherman Antitrust Act aimed to dismantle.