Competition and Welfare of Consumers: Critical Analysis of the Sherman Antitrust Act 1890

Abstract

This article explores the persistent debates surrounding the Sherman Antitrust Act 1890, underscoring its explicit endorsement of competition as a regulatory cornerstone in commerce. Drawing on pivotal cases like NCAA v. Bd. of Regents of Univ. of Okla. (1958) and City of Lafayette, La. v. La. Power & Light Co. (1978), the Act seeks to protect consumers by fostering competition, presuming that competitive markets result in more affordable prices and superior products. Through an examination of Articles 1 and 2, this article scrutinizes judicial interpretations of the Act's commitment to preserving the competitive process. Investigations into Sections 1 and 2 reveal the Act's emphasis on safeguarding competition rather than prioritizing harm to consumers, challenging arguments that seek to restrict or broaden liability under the banner of "consumer welfare." Lastly, the discussion delves into the historical backdrop and evolution of the Sherman Act, illustrating its ongoing significance in antitrust jurisprudence.