Celler-Kefauver Antimerger Act

(redirected from Celler-Kefauver Act of 1950)

Celler-Kefauver Antimerger Act

An American antitrust law passed in 1950 that closed a major loophole in the Clayton Act. While the Clayton Act prohibited mergers that reduced competition, it allowed companies to buy individual assets of competitors. Some companies did this to such an extent that it reduced competition, which had the potential to effectively sideline the Clayton Act. The Celler-Kefauver Act closed this loophole, giving the government the power to stop vertical mergers and asset acquisitions regarded as reducing competition. It is often simply called the Antimerger Act.
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Celler-Kefauver Antimerger Act

A 1950 federal antitrust law that updated the Clayton Act by severely restricting anticompetitive mergers resulting from acquisition of assets.
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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.
After the war, the perception that industrial concentration in Germany and Japan had fueled the rise of fascism contributed to a two-decade period of intensive antitrust enforcement--particularly against mergers--launched by the Celler-Kefauver Act of 1950. Here again, the ideology of the anti-monopoly movement was ambiguous in conventional left/right terms.
The Celler-Kefauver Act of 1950 transformed section 7 into a more effective tool for private litigants: