Modern antitrust law was created to combat the Standard Oil Trust

Read about the history of the Sherman Antitrust Act, the first law to ban monopolistic behavior

In its later years, Standard Oil formed a business trust that reflected the company's exponential growth. Politicians wanted to prevent such trusts and used the Sherman Antitrust Act to force Standard Oil to break up.

Standard Oil's predatory business practices included temporarily operating at a loss to drive competitors out of business

Rockefeller's oil monopoly had a dark side, including cutting oil prices so low that Standard Oil was sometimes temporarily operating at a loss in order to drive competitors out of business.

Standard Oil used vertical integration to create an empire

“Vertical integration” is a modern business phrase that refers to a company taking on multiple stages of production—but John D. Rockefeller pioneered it with his Standard Oil company, employing its own plumbers and handling its own oil transportation.

The winding journey from Standard Oil to the modern oil industry

Standard Oil’s impact on the business world can be clearly seen today in oil giants like Exxon and Chevron. But the journey from the Rockefellers’ trust to the modern firms was a windy road. After the Supreme Court ordered Standard Oil’s break up, the first step saw it separate into many state-based companies like Standard Oil of California and the Ohio Oil Company. Visualize it here.

The history of the Rockefellers in 60 seconds

John D. Rockefeller—the world's first billionaire—once controlled 90% of the US oil refining market, built Standard Oil through vertical integration, and used his fortune to fund universities, museums, and landmarks like Rockefeller Center.

Listen to a podcast that traces the history of DOJ antitrust enforcement

This podcast series traces how the US government's approach to regulating big business has changed over a century—from the DOJ's breakup of John D. Rockefeller's Standard Oil monopoly, through lawyer Robert Bork's influence on how courts interpret competition law, to the FTC's modern antitrust lawsuit against Amazon.

How John D. Rockefeller became the world's first billionaire

From a young age, John D. Rockefeller knew he was interested in business. He worked as a bookkeeper and sold candy prior to starting the business empire that would help cement the Rockefeller name in history: Standard Oil.

Read the Federal Trade Commission's legal definition of a monopoly

The Federal Trade Commission and the US Department of Justice (DOJ) Antitrust Division are the regulatory agencies responsible for overseeing antitrust laws. Before deeming any company a monopoly or acknowledging monopolistic power in a market, the FTC conducts thorough research into market competition, price, and even other competitors' business practices.

How the Rockefellers' wealth evolved over time

The Rockefellers built one of the most powerful business empires in US history. By the early 1900s, their company, Standard Oil, controlled over 90% of the US oil market.

In 1936, the federal government passed the Robinson-Patman Act, an antitrust law initially aimed at breaking up the power of the grocery store chain A&P.

How Standard Oil created Chevron and ExxonMobil

Standard Oil was eventually ordered to separate into 34 different entities, and over the following years, those 34 companies merged into what is now called the “Big Four” in the oil industry.

How famed investigative journalist Ida Tarbell took on Standard Oil

After watching her father lose his oil refining business to Standard Oil, Ida Tarbell began to focus on unfair business practices in the US, writing a series on the oil giant's transgressions.

Prior to the creation of the Securities and Exchange Commission, the 1913 Pujo Committee determined that 180 people were managing more than $22B—a large slice of the entire nation's wealth—and recommended extensive regulations.

Explore a list of well-known monopolies

Many American monopolies popped up during the rapid industrial growth of the Gilded Age. Industries like steel, tobacco, railroads, and telecommunication have all been monopolized at some point in history.

John D. Rockefeller’s father had a nefarious past

William A. Rockefeller Sr. earned his money via various schemes that included pretending to be a doctor to sell “herbal medicines” and posing as a deaf person to peddle for money.

Utility companies are often considered 'natural' monopolies, which occur in industries where the upfront costs of entering the market are high, making competition unrealistic.

Today’s Rockefellers have become climate activists

The Rockefeller Family Fund has been engaged in more than 40 lawsuits against ExxonMobil, a company that John D. Rockefeller’s Standard Oil created.

A 1948 Supreme Court ruling realigned the film industry

1948's landmark United States v. Paramount Pictures found that the "Big Five" studios violated antitrust laws, effectively ending the reign of the vertically integrated system and the golden age of Hollywood.

Watch how American monopolies used vertical and horizontal integration strategies to command markets

Vertical integration occurs when a company controls the entire manufacturing or development process, whereas horizontal integration involves expanding a company's market share. Both strategies have been used by US monopolies to establish dominance in markets.

In 1931-32, JP Morgan Jr. paid no income taxes due to his company’s losses

This legally reduced his taxable income under existing laws. Similarly, the Rockefellers leveraged charitable foundations to minimize taxes, allowing them to preserve wealth while directing funds to their preferred causes.

Robber barons, the monopolistic business people of the 19th century, explained

“Robber baron” was a term used to describe 19th-century businesspeople who engaged in monopolistic business practices and didn’t face much business regulation, resulting in significant wealth.

John D. Rockefeller—the world's first billionaire—was born to a well-known con artist father.

In 2018, the Supreme Court sided with American Express in a case that significantly changed antitrust regulation.

The US Department of Justice sued Visa, Mastercard, and American Express in 2010 over alleged anticompetitive contracts with merchants. While Visa and Mastercard settled out of court, American Express went to trial and had its case taken all the way up to the Supreme Court—which ruled that both sides of a transaction business must be analyzed to determine a monopoly.

In 2020, the US DOJ sued Google for unlawful monopolization of the search engine market

The US Department of Justice and numerous states accused Google of making exclusionary agreements with Android phone manufacturers to make its search engine the default on those devices, preventing competitors from gaining market share.

An overview of monopolies, when one company controls an entire market

In the business world, a monopoly exists when one company controls the entire market. Regulators take issue with monopolies because they have been found to limit consumer choices, raise prices, and hurt competition.

A timeline of the Rockefeller family

The Rockefeller family timeline (as it relates to the business world, at least) starts in 1839 with John D. Rockefeller’s birth. In the nearly 200 years since, his offspring have gotten involved in everything from the Watergate scandal to the McCormick & Company spice business.

The 1948 Supreme Court ruling was overturned in 2020

In 2020, US District Court Judge Analisa Torres overturned the 1948 Supreme Court ruling that broke up the studio system—effectively allowing the film industry to become vertically integrated once again—with companies like Amazon and Disney taking advantage of the relaxed regulations.

Meta's acquisition strategy for Instagram and WhatsApp led to a 5-year-long antitrust lawsuit

In 2020, the Federal Trade Commission sued Meta as part of the agency's efforts to rein in big tech companies. The FTC alleged that Meta overpaid for Instagram and WhatsApp in a "buy or bury" strategy to gain access to those companies' talent and diminish competition. In 2025, a federal judge sided with Meta, citing intense change in the social media landscape.

Monopoly was based on the satirical Landlord's Game, which criticized the abilities Monopoly rewarded.

In 1975, a Major League Baseball clause that kept players legally tied to their teams after retirement was dismantled, creating the modern concept of free agency.

Soybean oil fraud almost decimated American Express in 1963

A New York commodities trader who had defrauded the American government over uninspected meat for school lunches, Anthony "Tino" De Angelis, used American Express warehouses to sell soybean oil. However, Angelis had actually filled the tanks with water and placed just enough soybean oil on top of the tanks to pass inspection. American Express was liable for many of the tanks and its stock faced a huge downturn, opening the door for a then 33-year-old Warren Buffett to make his first purchase in the company.

Thomas Edison publicly executed animals with AC to convince the public of its dangers

J.P. Morgan first backed Thomas Edison's direct current system, seeing electricity's potential to usurp John D. Rockefeller's kerosene empire. Despite the investments and smear campaign against alternating current, alternating current ultimately won public support after lighting the 1893 World's Fair, after which Morgan would fund Tesla's wireless transmission tower.

Gibbons v. Ogden expanded federal power over interstate commerce

In 1824, the Supreme Court unanimously invalidated a New York steamboat monopoly, ruling that navigation between states constitutes interstate commerce. Chief Justice John Marshall held that Congress has authority over such commerce and that conflicting state laws are void under the supremacy clause.

The Rockefellers' family office expanded to become a multifamily office

The Rockefellers created the first known single-family office in the late 1800s but the firm has evolved since to serve many wealthy American families.

BlackRock sponsored the Federal Reserve's purchasing of corporate debt through exchange-traded funds during the COVID-19 pandemic, while it simultaneously sold some of its own shares on the secondary market—sparking controversy over potentially unfair advantages.

John Marshall strengthened the Supreme Court and national authority

As chief justice, John Marshall established the principle of judicial review. He reinforced federal supremacy in key cases, defining the Supreme Court as a powerful arbiter between states and the national government under the US federal system.

When a radio company was the biggest tech stock around

The Radio Corporation of America was the biggest stock during the 1920s. Originally called Marconi Wireless, the company transformed radio technology. The company pioneered broadcasting, created NBC, and became a tech giant. After remarkable growth and challenges, RCA was acquired by General Electric in 1986, marking the end of its 67-year independent existence.

BlackRock played an integral role in the Federal Reserve's response to the Great Recession, managing about $30B of hard-to-sell Bear Stearns assets on behalf of the New York Fed.

Larry Fink cofounded BlackRock with a $5M investment from Blackstone cofounder Stephen Schwarzman in 1988, before officially severing ties with Blackstone in 1994.

Watch a breakdown of 'The Volcker Rule,' which stopped banks from being able to make trades with client money and is one of the most controversial financial regulations to date.

Market concentration and high markups don't always signal a monopoly

When regulators and economists evaluate whether a company constitutes an illegal monopoly, they often consider its overall market share or its relatively high price markups. This piece argues that the Olley-Pakes decomposition is a better measure, identifying whether customers within a market are switching to more productive companies.

John Marshall advanced federal supremacy and judicial review

Marshall's jurisprudence emphasized that the Constitution is the supreme law of the land, enforceable by an independent judiciary. Through his court's decisions, he affirmed judicial review, broad implied powers for Congress, and federal authority to override conflicting state laws.

Marshall used deft political maneuvering to increase the court's power in Marbury v. Madison

This podcast explores how Chief Justice John Marshall avoided a direct clash with President Jefferson by denying William Marbury his commission—while simultaneously declaring that courts can strike down unconstitutional laws—cementing judicial review, and expanding the Supreme Court's authority.

Thomas Jefferson and John Marshall clashed over national power and states' rights

Distant cousins Jefferson and Marshall advanced opposing constitutional visions—Jefferson favoring states' rights and local majorities, while Marshall defended broad federal authority and judicial review. Through decisions such as McCulloch v. Maryland, Marshall advanced national supremacy over state resistance.

The Seven Sisters were a dominant midcentury Western oil consortium

Amid the fallout of World War II, Western multinational corporations expanded their control of the production of oil across the oil-rich Middle East, earning the pejorative nickname of the Seven Sisters. In the 1970s, the group’s role diminished as nationalist movements pursued sovereign control of the oil.

Cases during John Marshall's tenure defined the principles of federal Indian law

During Marshall's tenure, three landmark rulings—Johnson v. M'Intosh, Cherokee Nation v. Georgia, and Worcester v. Georgia—established foundational doctrines of federal Indian law, defining tribal sovereignty, limiting state authority, and placing primary responsibility for Native affairs in the federal government.

Oil shocks, war, and the 1970s crisis that remade American energy and economics

The oil crises of the 1970s—fueled by Middle East conflict and OPEC's dominance—triggered inflation, price controls, and policy failure. But they also accelerated fracking, alternative energy, and the rise of free-market economics.

The National Labor Relations Act gave workers the right to unionize in the US.

Hear an interview with Harvard Law School employee and labor law expert Sharon Block about how the parallel motivations of workers, employers, and government officials led to the creation of the National Labor Relations Act.

Monopolies are considered the most extreme form of imperfect competition

True monopolistic companies face no competition, meaning there aren't any near substitutes for the goods or services the company provides. Often, no competition exists because the monopoly is either approved by the government or the barrier to entry is costly.

Large oil companies knew about the impact of carbon emissions since the ’70s

PBS Frontline’s The Power of Big Oil reveals how industry giants like Exxon and Shell were researching climate change in the 1970s but then funded denial campaigns—using internal science to sow public doubt for decades.