Clayton Act

The Clayton Act, passed in 1914, is an anti-trust law.


Description

The Clayton Act seals several loopholes of the Sherman Act. Chiefly it addresses holding companies, mergers, and aquisitions.

A holding company is a company that is established to own shares in other companies. These were increasingly seen as a loophole around monopolies. This act outlaws acquisitions which substantially decrease competition or tend towards a monopoly.

The act also outlaws individuals from having control over competing businesses.


History


CategoryRicottone