<P> The Sherman Antitrust Act (Sherman Act, 26 Stat. 209, 15 U.S.C. § § 1--7) is a landmark federal statute in the history of United States antitrust law (or "competition law") passed by Congress in 1890 under the presidency of Benjamin Harrison . It allowed certain business activities that federal government regulators deem to be competitive, and recommended the federal government to investigate and pursue trusts . </P> <P> In the general sense, a trust is a centuries - old form of a contract whereby one party entrusts its property to a second party . These are commonly used to hold inheritances for the benefit of children, for example . The specific sense from 19th - century America used in the law refers to a type of trust which combines several large businesses for monopolistic purposes--to exert complete control over a market--though the law addresses monopolistic practices even if they have nothing to do with this specific legal arrangement . In most countries outside the United States, antitrust law is known as "competition law". </P> <P> The law attempts to prevent the artificial raising of prices by restriction of trade or supply . "Innocent monopoly", or monopoly achieved solely by merit, is perfectly legal, but acts by a monopolist to artificially preserve that status, or nefarious dealings to create a monopoly, are not . The purpose of the Sherman Act is not to protect competitors from harm from legitimately successful businesses, nor to prevent businesses from gaining honest profits from consumers, but rather to preserve a competitive marketplace to protect consumers from abuses . </P> <P> Over time, the act has also been used more broadly, to oppose the combination of entities that could potentially harm competition, such as monopolies or cartels . </P>

A key motive behind the sherman act was