Topic > The Pros and Cons of Antitrust Laws - 984

The Sherman Act made it illegal for competitors to enter into agreements that limit competition, this law also made it illegal for a company to operate a monopoly if that company is not a competitor Enough. The Sherman Act succeeded in dismantling the trusts, but as business practices in America began to change, companies found a new way to control prices and production. Instead of forming trusts, competitors would merge into one company; this new strategy to control prices and production is called fusion. Congress passed the Clayton Act in 1914 to combat this new business strategy. The Clayton Act helps protect consumers by prohibiting mergers that could significantly reduce competition. Also in 1914, Congress passed the Federal Trade Commission Act (FTC) which created a federal agency to police markets and prevent the occurrence of unfair trade practices. The FTC has the authority to investigate and stop unfair competition strategies and deceptive practices. Although these laws were enacted long ago, they continue to protect consumers and the market