The Violation of Sherman Act: Kodak Company Case

Kodak Company in 1888 was created by George Eastman who founded new concepts for photography. This company brought an enlighten way of how people use new technology of photographing to the mainstream. Once the company success begun, Kodak developed a solid control over the photography market making it a monopoly in the picture making business. According Antitrust Laws “a monopoly occurs when one company has solid control over the market with a particular product or service. The Sherman Antitrust Law was enacted in 1890 to prevent corporate monopolies or attempts at monopolization. This includes contracts to restrain free trade and protects consumers from unfair business practices. This act was made into law, Congressional support for it was so strong that there was only one vote against it” (2013). Therefore, 1921 and 1954 Kodak was faced by the US Government officials with an agreement that the company violated federal law of Sherman Act. The company reconciled the ruling of 1921 and concurred with the government to be protected by limitation. Under the agreement Kodak was eliminated from allowing products created by its competitors to be sold freely. Kodak endure another problem in 1954 ruling which deemed the company from selling a package which contained color film and photofinishing, that was considered restricted. The plan for the package of items was for them to sell an item on the purpose that a consumer buys a different item, or consider they will not purchase that item from another company. In addition, Kodak plan was to have consumers buy or sell an item on the assumption that the buyer must purchase additional items that were included in the item price. Both rulings showed proof that the company was guilty of the price power. “They began to include a fee in the pricing structure of the film that paid for processing and delivery. In 1954, Kodak was found of “tying” which is a violation of the Sherman Act. After the verdict Kodak was required