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Sherman Antitrust Act
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Sherman Antitrust Act Article

What is the “rule of reason” interpretation of the Sherman Antitrust Act?

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The U.S. Supreme Court applied the “rule of reason” interpretation to the Sherman Antitrust Act in 1920 to specify that only “unreasonable” restraint of trade is unlawful, allowing large firms more latitude. The interpretation was reversed in 1945, and the prohibition of monopolies was subsequently periodically enforced, including the breakup of the American Telephone and Telegraph Company in 1984.