Clayton Act


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Clayton Act

 

a US antitrust act adopted by Congress and signed by President W. Wilson on Oct. 15, 1914.

The act was named for the author of the bill, H. Clayton. It was designed to restrict the activity of trusts and to create the Federal Trade Commission to control them. The act formally released labor and farmer organizations from the prosecutions to which they had been subjected by the Sherman Anti-Trust Act of 1890. However, in practice, judicial prosecution of these groups continued on the basis of other antitrust legislation.

References in periodicals archive ?
The FTC challenged the merger under the Clayton Act with the state of Ohio.
First, the FTC should examine whether any of the social media giant's acquisitions "substantially lessened competition" in violation of Section 7 of the Clayton Act, Ciciline said.
We argue here that the "effects" test articulated for mergers in Section 7 of the Clayton Act permits challenges to such mergers, whether or not the precise mechanism by which such mergers elevate product prices in a particular case is precisely known.
These victimized customers are routinely granted standing to sue for treble damages under [section]4 of the Clayton Act. (2) Under predictable circumstances, the customers of the nonconspiring manufacturers will also pay inflated prices as a result of the conspiracy.
The evidence supporting the FTC's complaint shows that the proposed merger would make that situation even worse--a classic case for prohibiting a merger under Section 7 of the Clayton Act.
Justice alleged violation of the Clayton Act, which spells "relevant market" criteria for merger and acquisition review.
Amendments in 1976 to the Clayton Act, which prevents mergers and other practices to "substantially reduce" competition, (https://ago.mo.gov/civil-division/consumer/antitrust-laws/what-are-the-antitrust-laws-) granted States' Attorneys General the power to represent state residents in federal antitrust lawsuits seeking damages.
antitrust laws were established when Congress passed the Sherman Act in 1890 and the Clayton Act in 1914.
Related stories: FTC updates Clayton Act monetary thresholds Escalating Risks for Directors and Officers in Shareholder Derivative Actions Arnold & Porter's Hinchliffe advises on antitrust aspects of GE's Alstom acquisition
* FTC is less likely to challenge an act or practice as an unfair method of competition on a standalone basis if enforcement of the Sherman or Clayton Act is sufficient to address the competitive harm arising from the act or practice.
The Clayton Act was enacted in 1914 as an amendment to clarify and supplement the Sherman Act.