Final answer:
The Sherman Antitrust Act was enacted in 1890 to combat monopolies and trusts that obstructed competition, which included actions that interfered with interstate commerce. It showed the government's intent to oversee free trade practices and prevent the formation of business monopolies. The act set the stage for subsequent antitrust laws and remains foundational in antitrust regulation enforced by the FTC and the Department of Justice.
Step-by-step explanation:
The purpose of the Sherman Antitrust Act was to eliminate monopolies, trusts, or any other agreements that restrained free trade. Passed by Congress in 1890, this act specifically targeted business practices that interfered with the free market, including interstate commerce. It empowered the federal government to break up corporations that had formed 'combinations in restraint of trade,' a phrase meant to give wide-ranging power to break up trusts and monopolies.
This aim was illustrated dramatically when, in 1911, the U.S. Supreme Court allowed the government to dismantle Standard Oil into 34 independent companies to resolve its monopoly on the oil industry. Following the Sherman Act, other laws like the Clayton Antitrust Act of 1914 and the Federal Trade Commission (FTC) were established to further regulate anti-competitive practices.
These laws continued to evolve over the years, with the Celler-Kefauver Act of 1950 broadening the scope to include vertical and conglomerate mergers. Today, the FTC and the U.S. Department of Justice enforce antitrust laws, maintaining healthy competition in all sectors.