Celler–Kefauver Act

Celler–Kefauver Act

Long title	An Act to amend an Act entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes," approved October 15, 1914 (38 Stat. 730), as amended.
Enacted by	the 81st United States Congress
Effective	29 December 1950
Citations
Public law	P.L. 81-899
Statutes at Large	64 Stat. 1125
Codification
Acts amended	Clayton Antitrust Act
Legislative history
Introduced in the House as H.R. 2734 by Emanuel Celler (D-NY) on 15 February 1949 Passed the House on 15 August 1949 (223–92, 117 not voting) Passed the Senate on 13 December 1950 (55–22, 19 not voting) Signed into law by President Harry S. Truman on 29 December 1950

Celler–Kefauver Act is a United States federal law passed in 1950 that reformed and strengthened the Clayton Antitrust Act of 1914 which had amended the Sherman Antitrust Act of 1890. The Celler–Kefauver Act was passed to close a loophole regarding asset acquisitions and acquisitions involving firms that were not direct competitors. While the Clayton Act prohibited stock purchase mergers that resulted in reduced competition, shrewd businessmen were able to find ways around the Clayton Act by simply buying up a competitor's assets. The Celler–Kefauver Act prohibited this practice if competition would be reduced as a result of the asset acquisition.

Sometimes referred to as the Anti-Merger Act, the Celler–Kefauver Act gave the government the ability to prevent vertical mergers and conglomerate mergers which could limit competition.

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