Sherman Antitrust Act
Definition - What does Sherman Antitrust Act mean?
The Sherman Antitrust Act is an act that was put into law in 1890 under President Benjamin Harrison.
This act restricted businesses or business-related trusts from doing things that limited or restricted competition. It was designed to prevent the consolidation of economic power into monopolies that could dictate prices and otherwise control markets.
Justipedia explains Sherman Antitrust Act
The Sherman Antitrust Act was named after Ohio Senator, John Sherman, who was a chief supporter of the bill.
The bill's goal was to protect the free market and keep the playing field level for all companies in a given market. It did things such as make it illegal for companies to conspire together to place fixes on prices or territories. Many citizens of the time viewed such actions as unhealthy for the economy. This put pressure on the government to respond, and the Sherman Antitrust Act was the result.