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    Clayton Act

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    Pranov Roche

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    Clayton Act

    Uploaded by

    Pranov Roche
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    17 views11 pages

    Clayton Act

    Uploaded by

    Pranov Roche

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Clayton Antitrust

    Act of 1914
    What Is the Clayton Antitrust Act?

    • The Clayton Antitrust Act is a piece of legislation, passed by the U.S.


    Congress and signed into law in 1914, that defines unethical
    business practices, such as price fixing and monopolies, and
    upholds various rights of labor.
    • The Federal Trade Commission (FTC) and the Antitrust Division of
    the U.S. Department of Justice (DOJ) enforce the provisions of the
    Clayton Antitrust Act, which continue to affect American business
    practices today.
    Understanding the Clayton Antitrust Act
    • At the turn of the 20th century, a handful of large U.S. corporations
    began to dominate entire industry segments by engaging in
    predatory pricing, exclusive dealings, and mergers designed to
    destroy competitors.
    • In 1914, Rep. Henry De Lamar Clayton of Alabama introduced legislation
    to regulate the behavior of massive entities. The bill passed the House
    of Representatives with a vast majority on June 5, 1914.
    • Then the Senate passed its own version, and a final version, based on
    deliberation between House and Senate, passed the Senate on Oct. 6
    and the House on Oct. 8. President Woodrow Wilson signed the
    initiative into law on Oct. 15, 1914.
    • The act is enforced by the FTC and prohibits exclusive sales contracts,
    certain types of rebates, discriminatory freight agreements, and local
    price-cutting manoeuvres.
    • It also forbids certain types of holding companies. According to the
    FTC, the Clayton Act also allows private parties to take legal action
    against companies and seek triple damages when they have been
    harmed by conduct that violates the Clayton Act.
    • They may also seek and get a court order against any future anti-
    competitive practice
    • In addition, the Clayton Act specifies that labour is not an economic
    commodity. It upholds issues conducive to organized labour, declaring
    peaceful strikes, picketing, boycotts, agricultural cooperatives, and
    labour unions as legal under federal law
    Sections of the Clayton Antitrust Act

    • There are 27 sections to the Clayton Act.


    • Among them, the most notable include:
    • The second section deals with unlawful price discrimination, price
    cutting, and predatory pricing.
    • The third section, addresses exclusive dealings or the attempt to create
    a monopoly.
    • The fourth section states the right of private lawsuits of any individual
    injured by anything forbidden in the antitrust laws.
    • The sixth section, covers labour and the exemption of the workforce.
    • The seventh section handles mergers and acquisitions and is often
    referred to when multiple companies attempt to become a single entity.
    Clayton Antitrust Act Amendments
    • The Clayton Act is still in force today, essentially in its original form.
    However, it was somewhat amended by the Robinson-Patman Act of
    1936 and the Celler-Kefauver Act of 1950.
    • The Robinson-Patman Act reinforces laws against price discrimination
    among customers.
    • The Celler-Kefauver Act prohibits one company from acquiring the
    stock or assets of another firm if an acquisition reduces competition.
    • It further extends antitrust laws to cover all types of mergers across
    industries, not just horizontal ones within the same sector.
    • The Clayton Act was also amended by the Hart-Scott-Rodino Antitrust
    Improvements Act of 1976.
    • This amendment requires that companies planning big mergers or
    acquisitions make their intentions known to the government before
    taking any such action.
    What Are the 4 Main Points of the Clayton
    Antitrust Act?
    • The Clayton Antitrust Act targeted four anti-competitive practices in
    particular:

    • mergers,
    • acquisitions,
    • interlocking board directorates, and
    • price price discrimination

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