About the Clayton Antitrust Act of 1914

The Clayton Act Adds Teeth to US Antitrust Laws

Model of several small buildings inside single larger building
Monopoly Fighting US Antitrust Laws. Butch Martin / Getty Images

The Clayton Antitrust Act of 1914, was enacted on October 15, 1914, with a goal of strengthening provisions of the Sherman Antitrust Act. Enacted in 1890, the Sherman Act had been the first federal law intended to protect consumers by outlawing monopolies, cartels, and trusts. The Clayton Act sought to enhance and address weaknesses in the Sherman Act by preventing such unfair or anti-competitive business practices in their infancy. Specifically, the Clayton Act expanded the list of prohibited practices, provided a three-level enforcement process, and specified exemptions and remedial or corrective methods.



Today, a “trust” is simply a legal arrangement in which one person, called the “trustee,” holds and manages a property for the benefit of another person or group of people. But in the late 19th century, the term “trust” was typically used to describe a combination of separate companies.



Brief History of Antitrust Laws




Clayton Antitrust Act Bolsters the Sherman Act



Specifics of the Clayton Act






The Clayton Act and Labor Unions


Penalties for Violating the Antitrust Laws




The Basic Objective of Antitrust Laws


Significant Amendments to the Clayton Antitrust Act

While it remains fully in force today, the Clayton Antitrust Act was amended in 1936 by the Robinson-Patman Act and in 1950 by the Celler-Kefauver Act. The Robinson-Patman Act strengthened laws banning price discrimination among customers. The Celler-Kefauver Act made it illegal for one company from acquiring the stock or assets of another company if the takeover reduced competition in the industrial sector.

Passed in 1976, Hart-Scott-Rodino Antitrust Improvements Act requires that all companies considering major mergers inform the Federal Trade Commission of their intentions before proceeding. 

Antitrust Laws in Action – Breakup of Standard Oil

While charges of violations of the antitrust laws are file and prosecuted every day, a few examples stand out due to their scope and the legal precedents they set. One of the earliest and most famous examples is the court-ordered 1911 breakup of the giant Standard Oil Trust monopoly.


mla apa chicago
Your Citation
Longley, Robert. "About the Clayton Antitrust Act of 1914." ThoughtCo, Mar. 3, 2021, thoughtco.com/the-clayton-antitrust-act-4136271. Longley, Robert. (2021, March 3). About the Clayton Antitrust Act of 1914. Retrieved from https://www.thoughtco.com/the-clayton-antitrust-act-4136271 Longley, Robert. "About the Clayton Antitrust Act of 1914." ThoughtCo. https://www.thoughtco.com/the-clayton-antitrust-act-4136271 (accessed July 27, 2021).