Which historical decision severely weakened the Sherman Anti-Trust Act?

The choice of United States v. E.C. Knight Co. is significant because this Supreme Court decision, handed down in 1895, played a crucial role in limiting the scope and effectiveness of the Sherman Anti-Trust Act. In this case, the Court ruled that the federal government could not use the Sherman Act to regulate monopolies in manufacturing, as this was seen as an activity that did not directly affect interstate commerce. The decision reinforced the distinction between manufacturing and commerce, effectively creating a narrow interpretation of what constituted monopolistic practices that could be challenged under federal law.

By focusing on the manufacturing aspects of the case rather than the commercial implications, the ruling allowed companies engaged in manufacturing to operate fairly unrestricted, which weakened the federal government's ability to regulate monopolies. This ruling established a precedent that made it challenging for the government to break up trusts and monopolies under the Sherman Act, thereby undermining the intended purpose of the legislation aimed at promoting competition in the marketplace.