Clayton Act Section 7

And its test for the effect of the merger is the same as that which we have already seen for exclusive dealing cases governed by section 3.

Clayton act section 7. Law 2 section 7 of the clayton act prohibits corporate acquisition of stock or assets of another corporation where the effect of such acquisition may be to substantially lessen competition or tend to create a monopoly in any line of commerce in any section of the country. Section 7 speaks of any line of commerce in any section of the country emphasis added. But section 7 of the clayton act has a market definition different from that of section 2.

Section 7 of the clayton act prohibits mergers and acquisitions where the effect may be substantially to lessen competition or to tend to create a monopoly as amended by the robinson patman act of 1936 the clayton act also bans certain discriminatory prices services and allowances in dealings between merchants. Nor shall anything contained in this section prevent a corporation engaged in commerce or in any activity affecting commerce from causing the formation of subsidiary corporations for the actual carrying on of their immediate lawful business or the natural and legitimate branches or extensions thereof or from owning and holding all or a part of the stock of such subsidiary corporations when the effect of such formation is not to substantially lessen competition.