In the former, it remains a landmark decision in vertical integration cases; in the latter, it is responsible for putting an end to the old Hollywood studio system.

[3] The legal issues originated in the silent era, when the Federal Trade Commission began investigating film companies for potential violations under the Sherman Antitrust Act of 1890.

The government declined to pursue the Unity proposal and instead, owing to noncompliance with the District Court's binding consent decree, resumed prosecution via the 1943 lawsuit.

The Paramount decision is a bedrock of corporate antitrust law and as such is cited in most cases where issues of vertical integration play a prominent role in restricting fair trade.

The Supreme Court ruled 7–1 in the government's favor, affirming much of the consent decree (Justice Robert H. Jackson took no part in the proceedings).

Frankfurter took exception to the extent to which his colleagues had agreed with the studios that the District Court had not adequately explored the underlying facts in affirming the consent decree.

Also, he reminded the (Supreme) Court that the District Court had spent fifteen months considering the case and reviewed almost 4,000 pages of documentary evidence: "I cannot bring myself to conclude that the product of such a painstaking process of adjudication as to a decree appropriate for such a complicated situation as this record discloses was an abuse of discretion.

The court orders forcing the separation of motion picture production and exhibition companies are commonly referred to as the Paramount Decrees.

Consequences of the decision include: In 1980, the United States Department of Justice under President Ronald Reagan began a review of all consent decrees that were more than 10 years old.

[12] In 2019, the DOJ sought to terminate the Paramount Decrees, which would include a two-year sunset period as to the practices of block booking and circuit dealing to allow theater chains to adjust.