Clayton's case (represents a landmark legal precedent)

Clayton’s case (1865) established a key legal principle in antitrust law: when a company’s actions threaten to harm competition rather than just existing competitors, courts can intervene sooner. Specifically, it clarified that a merger or acquisition is unlawful if it is likely to lessen competition significantly, even if the merger has not yet actually reduced competition or harmed consumers. This case emphasizes prevention over correction, encouraging regulatory agencies to block potentially harmful mergers early to maintain fair market competition and protect consumers.