Section 7 Clayton Act

But section 7 of the clayton act has a market definition different from that of section 2.

Section 7 clayton act. It allows the federal trade commission and department of justice to regulate all mergers and gives the government discretion whether to give approval to a merger or not which it still commonly does today. May be substantially to lessen competition or to tend to create a monopoly. Section 7 of the clayton act prohibits mergers and acquisitions where the effect may be substantially to lessen competition or to tend to create a monopoly as amended by the robinson patman act of 1936 the clayton act also bans certain discriminatory prices services and allowances in dealings between merchants.

Section 7 of the clayton act allows greater regulation of mergers than just sherman act section 2 since it does not require a merger to monopoly before there is a violation. Clayton act a violation of section 7 which causes injury should create in the injured party a right to sue for treble damages. Yet courts have for the most part refused to adopt this syllogism and the clear mandate of section 4.

After the enactment of the sherman act in 1890 regulators found that the act contained certain weaknesses that made it impossible to fully prevent anti competitive businesses practices in the united states. Section 7 speaks of any line of commerce in any section of the country emphasis added. Senator henry clayton of alabama introduced the clayton antitrust bill to the us congress in 1914.