Figure 11.2
Without antitrust laws, the shelves would have fewer products for consumers to choose from.
Image: Beverages, Bottles, Shelf. (Credit: igorovsyannyko/ pixabay/ License: CC0)
In the late 1800s, concern over this kind of merger, as well as other attempts by large companies to create
monopolies or to control the market, led state and federal lawmakers to take steps to reduce the risks
associated with this type of practice.
Business Trusts
During the late 1800s, the United States became concerned about the development of corporate monopolies
dominating the manufacturing and mining industries (Jurist, n.d.). The end of the Civil War marked the
beginning of large advances in industrialization. Many large companies formed, especially in the oil and steel
industries, which were two industries that the country was beginning to heavily rely on. Manufacturing and
distributing companies grew at a fast pace in a wide variety of industries, ranging from sugar to beef to
tobacco (West, n.d.). The problem was that the growth occurred so rapidly that supply exceeded demand. This
outcome increased competition, and many companies sought to reduce the number of competitors through
forms of restraint of trade such as price-fixing, monopolies, and mergers (West, n.d.).
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Chapter 11 Antitrust Law
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