How does the Clayton Act differ from the Sherman Act?

The Sherman Act and the Clayton Act are two pivotal antitrust laws in the United States aimed at regulating competition and preventing monopolies. While both laws have the common goal of promoting fair competition and protecting consumers, they differ in their scope and mechanisms.

Sherman Act:

The Sherman Act, enacted in 1890, is the primary federal antitrust law that prohibits certain business activities that restrict competition. It focuses on practices such as price-fixing, bid-rigging, and market allocation that are deemed anticompetitive. The Sherman Act aims to maintain a level playing field for businesses and prevent the emergence of monopolies that could harm consumers.

Clayton Act:

The Clayton Act, passed in 1914, complements the Sherman Act by targeting specific anticompetitive behaviors such as mergers and acquisitions that may substantially lessen competition or create monopolies. Unlike the Sherman Act, which focuses on activities that restrain trade, the Clayton Act addresses issues related to market structure and potential barriers to competition.

While the Sherman Act is more general in its approach, the Clayton Act provides additional tools to address specific antitrust concerns, particularly regarding mergers and acquisitions that could harm competition in the marketplace.