Analysis of the Sherman Act

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Analysis of the Case
The Sherman Act provides guidelines protecting consumers from supracompetition in a given market. However, it has been noted that there are cases where such a scenario can occur without prior arrangement by the parties involved. Where such a situation arises, the antitrust agencies have to step in and offer a solution. In the US, the Federal Trade Commission (FTC) is involved in the monitoring and enforcing of various sections of the Federal Trade Commission Act that limits illegal practices in trade in the US. In this case, four gasoline additive manufacturers were involved in an antitrust case with the notion that they had established supracompetition among themselves without any formal agreement.
Since the 1920s, gasoline has been added additives to improve its efficiency and offer additional benefits such as preventing the engines from “knocking”. In the US, the Ethyl Corporation held the most significant share of these compounds during the 1920s up to 1948 (Hay). In subsequent years, other producers entered the market, such as DuPont in 1948, PPG Industries in 1961, and Nalco Chemical Company in 1964. From 1974 to 1979, the form companies dominated the US domestic market for engine antiknock compounds. However, a change in government policy in the use of unleaded gasoline and the use of catalytic converters leading to a tremendous impact on the use of antiknock agents. The FTC noted that during this period, the four companies used supracompetitive strategies leading to the elimination of competitors.
It is illegal for firms to fix prices among themselv...