Since the mid-20th century, freight railroads have been exempt from the nation’s antitrust laws but until 1980 were subject to tight regulation by the Interstate Commerce Commission. By the late 1970s, the industry was in poor financial condition with an excess of capacity. In an effort to revive the rail industry, Congress in 1980 deregulated competitive rail service and allowed the railroads to shed their excess capacity. Railroads were free to shed marginal routes and enter into long-term shipping contracts. Unfortunately, in 1980, Congress failed to remove the industry’s antitrust exemptions.