Understanding the Webb-Pomerene Act: A Key Exemption in Antitrust Law

Definition & Meaning

The Webb-Pomerene Act, enacted in 1918, is a U.S. law that provides certain companies with immunity from antitrust laws. This act was designed to encourage cooperative activities among businesses engaged in foreign trade, allowing them to collaborate without fear of violating antitrust regulations. The exemptions granted under this act were initially applicable until 1920, during which the Federal Trade Commission (FTC) offered stays of investigation for qualifying companies.

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Real-world examples

Here are a couple of examples of abatement:

For instance, a group of agricultural exporters may form a cooperative under the Webb-Pomerene Act to collectively market their products overseas. This collaboration allows them to share resources and reduce costs while remaining compliant with antitrust regulations.

(hypothetical example) A technology firm may join forces with other companies to develop a new software product for international markets, benefiting from the protections offered by the Webb-Pomerene Act.

Comparison with related terms

Term Description Difference
Clayton Antitrust Act A law aimed at preventing anticompetitive practices. The Webb-Pomerene Act provides exemptions for certain cooperative activities in foreign trade.
Antitrust Laws Laws designed to promote competition and prevent monopolies. The Webb-Pomerene Act allows specific exemptions for qualifying companies engaged in international trade.

What to do if this term applies to you

If you believe your business activities may qualify for exemptions under the Webb-Pomerene Act, consider consulting with a legal professional who specializes in antitrust law. Additionally, you can explore US Legal Forms for templates that may assist in compliance and documentation related to cooperative business activities.

Quick facts

Attribute Details
Enacted 1918
Exemption Duration Until 1920
Regulating Body Federal Trade Commission
Focus Cooperative activities in foreign trade

Key takeaways