The Celler–Kefauver Act is a

United States federal law The law of the United States comprises many levels of codified and uncodified forms of law, of which the most important is the nation's Constitution, which prescribes the foundation of the federal government of the United States, as well as ...

passed in 1950 that reformed and strengthened the

Clayton Antitrust Act The Clayton Antitrust Act of 1914 (, codified at , ), is a part of United States antitrust law with the goal of adding further substance to the U.S. antitrust law regime; the Clayton Act seeks to prevent anticompetitive practices in their incipie ...

of 1914, which had amended the

Sherman Antitrust Act The Sherman Antitrust Act of 1890 (, ) is a United States antitrust law which prescribes the rule of free competition among those engaged in commerce. It was passed by Congress and is named for Senator John Sherman, its principal author. ...

of 1890. The Celler–Kefauver Act was passed to close a

loophole A loophole is an ambiguity or inadequacy in a system, such as a law or security, which can be used to circumvent or otherwise avoid the purpose, implied or explicitly stated, of the system. Originally, the word meant an arrowslit, a narrow ver ...

regarding asset acquisitions and acquisitions involving firms that were not direct competitors. While the Clayton Act prohibited stock purchase mergers that resulted in reduced competition, shrewd businessmen were able to find ways around the Clayton Act simply by buying up a competitor's assets. The Celler–Kefauver Act prohibited that practice if competition would be reduced as a result of the asset acquisition. Sometimes referred to as the Anti-Merger Act, the Celler–Kefauver Act gave the government the ability to prevent vertical mergers and conglomerate mergers which could limit competition.

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* * * * * * also available as * * * 1950 in law 81st United States Congress United States federal antitrust legislation {{US-fed-statute-stub

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