Kaeyln Kwon
Yongsan International School of Seoul
Abstract
This paper explores the landmark U.S. Supreme Court case Standard Oil Co. of New Jersey v. United States (1911), which fundamentally reshaped corporate rights and antitrust regulation in the United States. It explores the case within the broader context of American economic history, particularly the emergence of monopolistic practices during the mid-20th century and the slow evolution of regulatory oversight. John D. Rockefeller’s Standard Oil Company used aggressive horizontal and vertical integration, predatory pricing, and secret railroad rebates to build a corporate empire that controlled over 90% of U.S. oil refining. The company’s practices prompted public outcry, notably through Ida Tarbell’s muckraking exposé, and led to the government’s antitrust prosecution under the Sherman Antitrust Act of 1890. The resulting decision, which broke Standard Oil into 34 separate companies, established the critical “Rule of Reason” doctrine—holding that only unreasonable restraints of trade are illegal. This paper also explores the legacy of the ruling compared to other major antitrust and monopoly cases, and examines the evolving responsibilities of corporations and government institutions to ensure market fairness. Ultimately, the Standard Oil case set enduring legal and economic precedents that continue to influence antitrust enforcement and corporate regulation today.
