Legal Definitions - vertical trust

Definition: A vertical trust is a type of combination where multiple businesses or plants engaged in successive stages of production or marketing are brought together under a single ownership.

Example: A company that owns a farm, a food processing plant, and a grocery store is an example of a vertical trust. The company controls the production, processing, and distribution of the food from start to finish.

Explanation: In a vertical trust, the company has control over multiple stages of the production or marketing process. This can lead to increased efficiency and lower costs, but it can also lead to anti-competitive behavior if the company uses its power to limit competition or raise prices.