Sherman Antitrust Act

Definition of 'Sherman Antitrust Act'


Anti-monopoly U.S. legislation which attempted to increase economic competitiveness. The Sherman Antitrust Act of 1890 made it illegal for companies to seek a monopoly on a product or service, or form cartels.

Investopedia explains 'Sherman Antitrust Act'


The first major corporations to suffer as a result of this Act were American Railway Union, Northern Securities Company and American Tobacco Company. Despite what the name may suggest, this legislation was not targeting trusts.



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