Anti-trust laws are regulations that aim to promote competition and prevent monopolies in order to protect consumers. They were established to ensure fair business practices and maintain a level playing field in the economy.
Related terms
Monopoly: A single company or entity that has complete control over an industry or market.
Sherman Antitrust Act: The first federal law enacted in 1890 to prohibit trusts (monopolies) and any other contracts, combinations, or conspiracies that restrain trade.
Clayton Antitrust Act: Passed in 1914, this act strengthened existing anti-monopoly legislation by prohibiting price discrimination and certain types of exclusive dealing arrangements.