Sherman Antitrust Act

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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.

BREAKING DOWN '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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