Final answer:
The Sherman Antitrust Act made it illegal for corporations to engage in anti-competitive behavior and form monopolies. It gave the federal government the power to break up corporations that formed combinations in restraint of trade. The act aimed to promote fair competition and prevent the concentration of economic power.
Step-by-step explanation:
The Sherman Antitrust Act, passed in 1890, made it illegal for corporations to engage in anti-competitive behavior and form monopolies. The law targeted trusts that interfered with the free market and interstate commerce. It gave the federal government the power to break up corporations that it believed were acting in restraint of trade by forming monopolies or engaging in other practices that allowed firms to artificially raise prices.
For example, in 1911, the U.S. Supreme Court upheld the government's right to break up Standard Oil, which had controlled about 90% of the country's oil refining, into 34 independent firms. This demonstrated the power of the Sherman Antitrust Act in breaking up monopolies.
The act was intended to promote fair competition and prevent the concentration of economic power in the hands of a few powerful corporations. It aimed to protect consumers and ensure a level playing field for businesses.