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Sherman Anti-Trust Act
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I just got a phone today! I can't wait to start calling and texting my friends. But first, I need a number. There's so many different services though! Why don't we have only one?
We did. Prior to the 1970s, AT&T was the only telephone company in the market, controlling all the telephone cables. They were able to charge sky high prices with their power. They were a monopoly.
Anti-Trust legislation? Is that the Sherman Anti-Trust Act? What does it do?
But, in the 1970s, The US government decided to take AT&T to court. Under anti-trust legislation, AT&T was broken down.
What happened to the market then?
The Sherman Anti-Trust Act enforces fair competition in the market and prevents monopolies or collusion from happening. For AT&T, the company was broken up.
Without a dominant company, new firms to join the market and compete with lower prices. Technology rapidly advanced into the wireless phones we use today!
Wow, so cool! The Sherman Anti-Trust Act is really helping us consumers against those money grubbing corporations.
Thanks to the Sherman Anti-Trust Act, we customers can rest easy knowing that the market is fair for all!
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