Sherman Act

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  • Seven dollars?! The subway company keeps boosting the prices!
  • A monopoly?
  • Well, that's because the subway company owns all of the local transportation. It's a monopoly.
  • That's not fair! Shouldn't that be illegal?
  • A monopoly is when one company or provider controls a majority of a certain market.
  • Those little... gahhh!!!
  • It is, actually. It was made illegal in 1890 by the Sherman Act. You might know it as the Anti-Sherman Trust Act. Specifically, it prohibited mergers between companies if the newly formed company held too big of a share in the market. Implementing this law was necessary to let companies compete fairly. Unfortunately, this is the only subway in town, so until a competitor comes in, they will continue to monopolize the market.
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