Sherman Antitrust Act: Its Relevance for Australian Businesses in 2025

The Sherman Antitrust Act may be an American legal icon, but its principles echo loudly in Australia’s competition landscape—even in 2025. With market dominance and fair trading under constant scrutiny, understanding the Sherman Act’s influence helps Australian business owners, investors, and policymakers navigate the evolving regulatory environment.

What is the Sherman Antitrust Act?

Passed in the United States in 1890, the Sherman Antitrust Act was a groundbreaking law designed to combat anti-competitive practices, monopolies, and cartels. Its two core provisions outlaw:

• Contracts, combinations, or conspiracies in restraint of trade
• Monopolization or attempts to monopolize any part of interstate or foreign commerce

For over a century, the Act has been the backbone of US antitrust enforcement—shaping how companies compete and how regulators protect consumers. But its reach extends far beyond American borders, influencing policy and legal frameworks in countries like Australia.

How the Sherman Act Shaped Australian Competition Law

Australia’s own Competition and Consumer Act 2010 (CCA) is deeply inspired by the principles of the Sherman Act. While Australia’s economic context is unique, the core aim—preserving competition and preventing abuse of market power—remains the same. Key parallels include:

• Cartel conduct: Both laws prohibit collusive agreements to fix prices or rig bids.
• Abuse of dominance: The Sherman Act’s anti-monopoly provisions are echoed in Australia’s rules against misuse of market power (Section 46 of the CCA).
• Merger scrutiny: Large mergers that may substantially lessen competition are closely examined, following the US model.

Australia’s competition regulators, notably the Australian Competition and Consumer Commission (ACCC), often look to US antitrust cases for precedent and guidance, especially as digital markets and global commerce blur traditional borders.

2025 Updates: Globalisation, Tech Giants, and Antitrust Momentum

This year, Australian competition policy is in the midst of a digital reckoning. Inspired by aggressive enforcement under US antitrust law—including high-profile cases against Big Tech—the ACCC and federal government are ramping up their own efforts:

• Digital Platforms Inquiry 2.0: In 2025, the ACCC is pushing for stricter rules on digital gatekeepers, drawing on US and EU antitrust actions to frame new legislation.
• Merger Reform: The Treasury’s proposed merger reforms, expected to pass Parliament this year, will make it harder for dominant firms to swallow up potential rivals—mirroring US efforts to scrutinise tech and retail mergers.
• Global Coordination: Australia is collaborating more closely with the US, EU, and UK on cross-border investigations, reflecting the international reach of Sherman Act-style enforcement.

For example, the ACCC’s recent joint investigation with the US Department of Justice into a global e-commerce giant’s local practices drew directly on legal arguments first made under the Sherman Act.

What This Means for Australian Businesses and Investors

Whether you’re a startup, a listed company, or an investor, the legacy of the Sherman Antitrust Act is more relevant than ever. Here’s what to keep top-of-mind in 2025:

• Heightened Scrutiny: Mergers, partnerships, and supplier agreements face more intense regulatory review, especially in tech, retail, and healthcare.
• Global Standards: Australian firms operating internationally need to comply with both local and overseas antitrust laws. Multi-jurisdictional investigations are becoming the norm, not the exception.
• Risk Management: Boards and executives should prioritise competition law compliance, as penalties for breaches can be severe—both financially and reputationally.

Recent enforcement trends show no sign of slowing. In fact, the ACCC has flagged increased funding in the 2025-26 federal budget to pursue cartel conduct and abuse of market power, especially among digital and infrastructure giants.

The Takeaway: Old Law, New Relevance

Though over 130 years old, the Sherman Antitrust Act continues to shape the competitive landscape for Australian businesses. Its principles are embedded in local law, and its influence is only growing as global regulators tackle the challenges of digital markets and cross-border giants. Staying informed—and compliant—means not just understanding Australian law, but recognising the enduring global legacy of the Sherman Act.