Other notable legislation is the Federal Trade Commission Act of 1914 (established the Federal Trade Commission (1)), the Robinson-Patman Act of 1936 (provided protection against price discrimination to small retailers), and the Celler-Kefauver Act
of 1950 (closed the loopholes regarding asset acquisition by potential competitors to limit competition).
The other major risk to the model is the possibility of cooperative gaming of the system, although many of these possibilities are excluded by law--e.g., the Sherman Act of 1890, Clayton Antitrust Act of 1914, Robinson-Patman Act of 1936, and the Celler-Kefauver Act
of 1950, and by related regulation--as being anti-competitive and in restraint of trade.
Its spirit animates a long chain of important cases from Chicago Board of Trade in 1918 (authored by Brandeis himself) to TOPCO in 1972, and a string of congressional reforms including the Clayton and Federal Trade Commission Acts of 1914, the Robinson-Patman Act of 1938, and the Celler-Kefauver Act
In 1950, for instance, Congress passed one of its strongest anti-monopoly laws, the Celler-Kefauver Act
, which prohibited companies from acquiring each other's assets, such as patents, trademarks, and copyrights, as a means of stifling competition.
(5) As drafted in 1914, section 7 applied only to stock acquisitions of competitors, (6) and it did not establish a clear standard of illegality (7) As a consequence, section 7 remained largely "ineffective" until Congress passed the Celler-Kefauver Act
These actions were followed by the passage of other enforcement acts, such as the Celler-Kefauver Act
(1950), the Williams Act (1968), and the HartScott-Rodino Act (1976), that control the way businesses are allowed to combine while guarding shareholder interest.
An important aspect of the controversy involves the effect of enforcement of the merger law, Section 7 of the Clayton Act, as amended by the Celler-Kefauver Act
in 1950.(3) The literature on the enforcement effects of the merger law is generally divided into four branches.
Enforced with remarkable vigor, the Celler-Kefauver act
by the 1960s had effectively closed the horizontal merger as an avenue of growth for large corporations.
Steel, Congress passed the Celler-Kefauver Act
, which imposed tight controls on such combinations.
He states: "Although the Celler-Kefauver Act
of 1950 gave the antitrust agencies concurrent enforcement jurisdiction, the Justice Department assumed initially that only the FTC would enforce the act.
But the impact of the Celler-Kefauver Act
on merger enforcement is less than evident.
Finally, there was the Celler-Kefauver Act
of 1950, which amended the Clayton Act section 7 regulation of corporate mergers.