Blog Post #8: The Sherman Anti-Trust Act & Media Consolidation

 What is the Sherman Anti-Trust Act & Media Consolidation?

Have you ever noticed that there are so many different competing news organizations telling us all the same things? You may think, "Why don't we just have one?" In my personal experience, four local news channels are telling me the same thing regarding local happenings. Well, the reason why we have so many is because of the Sherman Anti-Trust Act. 

 

The Sherman Anti-Trust Act is a "landmark U.S. law that bans businesses from colluding or merging to form a monopoly." This law is why when certain companies wish to merge, they must jump through many hoops and even end up on Capitol Hill, testifying in front of Congress. This Act was passed in 1890 to prevent certain powerful groups from "dictating, controlling, and manipulating prices in a particular market." This Act was proposed with the aim of promoting economic fairness and keeping the market competitive while keeping an eye on intrastate commerce. This was the first time the United States Congress attempted to halt specific individuals from putting a corner on the market and subtly controlling the economy. 

 

The Act was named after Ohio Senator John Sherman, who proposed it. The Act remained untouched until 1914, when it was amended by the Clayton Anti-Trust Act, which addressed certain economic aspects that Sherman's Act did not mention. During the early twentieth century, the American public felt particularly hostile towards companies like Standard Oil and the American Railway Union because they monopolized industries such as oil and the railroads. 

 

One of the most critical features of the Sherman Anti-Trust Act is that it keeps the American job market extremely competitive while remaining open to ever-changing business practices. This Act is also a criminal law when violated. Those found violating the Sherman Anti-Trust Act can face up to ten years in prison or pay a fine of up to one million dollars if it is just one person or up to one hundred million dollars if an entire corporation is found in violation. Some modern-day violations of the Sherman Anti-Trust Act have been Google, Microsoft, and Apple because of accusations "of seeking to create a monopoly in Internet browser software" and " exploiting the market power of its app store." 

 

Media Consolidation is" the concentration of ownership of our news sources into the hands of fewer and fewer corporations." This definition ties into the Anti-Trust Act because it ensures that not just one news organization handles how we discover our information and has access to many different perspectives and types of information. John Light writes, "Americans recognize that the media does not represent their views, and media consolidation is largely to blame." In the early 1980s, most U.S. media could be tracked through fifty separate organizations, but now, nearly thirty years later, that number has dropped drastically. 

 

The U.S. government wanted to preserve media diversity by preventing media consolidation. This was done by regulating corporations from owning too many newspapers or television stations. 

How Does the Sherman Anti-Trust Act & Media Consolidation Affect Us?

The ability to discern what type of news media we wish to take in is hugely pivotal for our country. John Light writes, "when corporations control media coverage, they can keep the public in the dark about legislation that hurts the public interest but helps their bottom line." A recent PEW research study found that "57 percent of Americans get their news from television, 25 percent from radio, and 20 percent from newspapers." We can see here that some media forms are dying out, which is inevitable in our ever-changing society. Still, if news organizations become monopolized, we lose a considerable part of our ability to find accurate information that will allow us to make crucial decisions, such as who to vote for or if public outcry is necessary.
 
Local news journalists have said that "corporations dictate their  priorities with little knowledge of the communities they cover." Local news channels are important because they help us stay informed about our community.
 
Without the news, we would live in the dark as to what is happening in our own country and worldwide. For me, that type of naivete is a terrifying thought. All segments of society would be affected by this because everyone needs news. In this situation, ignorance is not bliss.

 

Works Cited

 

Kenton, Will. “Sherman Antitrust Act: Definition, History, and What It Does.” Investopedia, Investopedia, www.investopedia.com/terms/s/sherman-antiturst-act.asp. Accessed 12 Feb. 2024.

 

Light, John. “What Is Media Consolidation and Why Should Anyone Care?” BillMoyers.Com, 17 May 2017, billmoyers.com/story/media-consolidation-should-anyone-care/.