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Sherman Act
The Sherman was the first antitrust legislation enacted by congress in 1890. The roots of the Act come from common law principles and looked to promote full an free competition. The Sherman Act placed restraints on trade that would lead to monopolies of an industry and prohibited combinations that would likely raise coast to the consumer. Finally, the Sherman Act gave the government power to to criminally prosecute and private parties the ability to sue violators.
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U.S. v Standard Oil Company
In 1911, the US DOJ filed a lawsuit against Standard Oil Company in violation of the Sherman Act. Stand Oil Co. expanded its refinery business into both oil exploration as well as sale and distribution to consumer markets. Standard Oil Co. undercut competitors and forced them out of business. Eventually Standard Oil Co. would own all refineries in the the United Stated. Standard Oil Co. was found in violation of the Sherman Act which led to the break up of the company into 34 separate companies. -
U.S. v Union Pacific Railroad Company
In 1912, the U.S. DOJ filed a lawsuit against the Union Pacific Railroad Co. in violation of the Sherman Act. In 1901, Union Pacific RR Co. acquired control over the Souther Pacific Railroad Co. This gave Union Pacific dominating control over the railroad industry and suppressed free competition. In 1913, the Supreme Court upheld that Union Pacific had violated the Sherman Act and forced Union Pacific to sell off all owned shares of the Southern Pacific Railroad. -
Clayton Act
The Clayton Act was adopted into law in 1914 furthering antitrust laws enacted by the Sherman Act. The Clayton Act prohibits both anti-competitive mergers, as well as, discriminatory pricing. The Clayton Act also allowed private parties to legal action against those who violated the Act. It should be noted that at the same, the Federal Trade Commission was created as an enforcement agency on antitrust laws. -
Robinson-Patman Act
In 1936, Congress furthered the reach of the Clayton Act with the passing of the Robinson-Patman Act. This Act prohibited price discrimination within interstate trade such as distributors charging different prices to different retailers. Since its passing, the Robinson-Patman Act has been highly criticized as anti-competitive itself and has been rarely used in practice. -
FTC v Morton Salt Co
In 1948, the FTC issued a cease and desist order to Morton Salt Co. following an investigation that found that the company had used discriminatory pricing when giving quantity based discounts, violating provisions of the Robinson-Patman Act. The FTC found that the company’s practices would give larger businesses an unfair advantage over smaller businesses who could not afford to purchase larger quantities. -
Celler-Kefauver Act
In 1950, Congress added to the antitrust legislation regarding mergers, this time addressing vertical mergers. The Act aims to prevent mergers and acquisitions that could reduce competition or create monopolies from companies on different tiers of the supply chain. -
FTC v Consolidated Food Corp
In 1965, The Federal Trade Commission filed a lawsuit against Consolidated Food Corp. in violation of the Clayton Act. Consolidated Food acquired Gentry Inc in 1951 leading large amount of control in food processing. FTC held that Consolidated food engaged in reciprocal buying of Gentry products which led to substantial lessening of competition. The decision was eventually reversed by US Court of Appeals. -
FTC v Borden Co.
In 1996, the FTC issued a cease and desist order against Borden Co, a company that produces and sells evaporated milk, over violations of the Robinson-Patman Act on price discrimination. Borden Co sold their products both under their name and under various private brand names but charged customers more than others. -
U.S. v Ford Motor Co
In 1972, The US DOJ challenged the acquisition of Electric Auto Lite Co by Ford Motor Co as a violation of the Celler Kefauver Act. The DOJ argued that the acquisition of Autolite, an independent spark plug manufacturer, would substantially lessen competition with other companies such as General Motors. The Supreme Court ordered Ford’s divestiture of Autolite. -
FTC v Staples & Officer Depot
In 1996, Staples and Office Depot initiated plans for a merger. At this time, both corporations were the top controllers of the officer supply market. FTC challenged the merger claiming that the elimination of competition between Staples and Office Depot would lead to higher prices and lower quality. Staples and Office Depot eventually abandoned their merger efforts and the FTC dismissed their case. -
U.S. v AT&T and Time Warner
In 2018, the US DOJ attempted to place a permanent injunction on the a merger between AT&T and Time Warner, citing violations of the Celler-Kefauver Act. The merger of the one of the largest telecommunications companies with one of the largest media and entertainment companies gives a wide reach of power throughout many different fields and causing higher costs to the consumer. However, a US Appellate court ruled in AT&T’s favor and the merger went through.