Clayton Act
The Clayton Act, passed in 1914, is an anti-trust law.
Contents
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
The Clayton Act was named after the congressman who whote the bill and introduced it into Congress, Henry De Lamar Clayton Jr. (AL-3). It was written in the context of the Commission on Industrial Relations, which had been authorized in the last months of the Taft administration and was proceeding rapidly under the Wilson administration.
This act was passed and signed into law alongside the Federal Trade Commission Act, under Democratic control of both Congress and the White House.
The Clayton Act was amended several times, principally by the Robinson-Patman Act in 1936 and the Hart–Scott–Rodino Antitrust Improvements Act in 1976.