Although U.S. Steel controlled nearly 75 percent of the domestic iron and steel industry, in 1920 the Supreme Court ruled that the firm was not in violation of the Sherman Antitrust Act because there was no evidence of abusive behavior. What antitrust doctrine was the court applying in this case?

Question

Quizplus · Accepted Answer

The Supreme Court was applying the rule of reason, which requires an evaluation of the particular circumstances of a case to determine whether a business practice unreasonably restricts competition. In this case, the Court found that U.S. Steel's large market share was not the result of anticompetitive behavior, but rather its efficiency and innovation in the industry.