90% of the country’s oil refining, into 34 independent firms, including Exxon, Mobil, Amoco, and Chevron. In 1914,

the Clayton Antitrust Act outlawed mergers and acquisitions (where the outcome would be to “substantially lessen

competition” in an industry), price discrimination (where different customers are charged different prices for the

same product), and tied sales (where purchase of one product commits the buyer to purchase some other product).

Also in 1914, the Federal Trade Commission (FTC) was created to define more specifically what competition was

unfair. In 1950, the Celler-Kefauver Act extended the Clayton Act by restricting vertical and conglomerate mergers.

A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain,
merge operations. A conglomerate merger is a merger between firms that are involved in totally unrelated business
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