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

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The Supreme Court ruled that U.S. Steel was not in violation of the Sherman Antitrust Act because there was no evidence of abusive behavior, and the Court applied the rule of reason in this case. This means that although U.S. Steel had a large share of the market, they were not using their power to harm competition or consumers. The rule of reason requires the Court to consider all the circumstances surrounding an alleged antitrust violation, including the motives and effects of the defendant's actions.