The Sherman Anti-Trust Act, America’s first antitrust…

The Sherman Anti-Trust Act, America’s first antitrust statue, becomes law in July 2, 1890.

Passed by Congress under the presidency of Benjamin Harrison, the Sherman Act broadly prohibits (1) anticompetitive agreements and (2) unilateral conduct that monopolizes or attempts to monopolize the relevant market.

The law attempts to prevent the artificial raising of prices by restriction of trade or supply.

"Innocent monopoly", or monopoly achieved solely by merit, is perfectly legal, but acts by a monopolist to artificially preserve that status, or nefarious dealings to create a monopoly, are not.

The purpose of the Sherman Act is not to protect competitors from harm from legitimately successful businesses, nor to prevent businesses from gaining honest profits from consumers, but rather to preserve a competitive marketplace to protect consumers from abuses.