The Celler–Kefauver Act is a
United States federal law
The law of the United States comprises many levels of Codification (law), codified and uncodified forms of law, of which the supreme law is the nation's Constitution of the United States, Constitution, which prescribes the foundation of the ...
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 inci ...
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 and consequently prohibits unfair monopolies. It was passed by Congress and is named for S ...
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 vertic ...
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.
See also
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Hart–Scott–Rodino Antitrust Improvements Act
The Hart–Scott–Rodino Antitrust Improvements Act of 1976 (Public Law 94-435, known commonly as the HSR Act) is a set of amendments to the antitrust laws of the United States, principally the Clayton Antitrust Act. The HSR Act was signed into ...
* ''
United States v. Continental Can Co.''
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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 and consequently prohibits unfair monopolies. It was passed by Congress and is named for S ...
*
Robinson–Patman Act
The Robinson–Patman Act (RPA) of 1936 (or Anti-Price Discrimination Act, Pub. L. No. 74-692, 49 Stat. 1526 (codified at )) is a United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination. ...
References
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1950 in American law
81st United States Congress
United States federal antitrust legislation
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