Standard Oil Co. of New Jersey v. United States (1911)
Definition - What does Standard Oil Co. of New Jersey v. United States (1911) mean?
The court case of Standard Oil Co. of NJ v. the U.S. (1911) was a defining case in abolishing a monopoly under the Sherman Antitrust Act.
The Standard Oil Co. had acquired other companies legally; however, it created such a vast network of ownership that covered all ends of the market and, in doing so, created anti-competitive actions.
The court ruling determined that it was illegal for any one company to own so many facilities so as to create an unfair monopoly over other competition.
Justipedia explains Standard Oil Co. of New Jersey v. United States (1911)
The court case saw the dissolution of the oil company as it was constituted at the time, and created several separate companies that ended up competing against one another. The court created a limit for companies in that they could not acquire other companies to the extent of owning the entire market over any product or service.
The oil company had been a precedent case because of its saturation across the United States and because of the fact that the negative results of the monopoly were being felt by many different businesses. It was used to set an example and clarify to other companies that would set out to do the same thing, and showed that monopolies were illegal even if they were accrued through legal means.