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With these privileges, the company could undersell American merchants and monopolize the colonial tea trade. The act proved inflammatory for several reasons. First, it angered influential colonial merchants, who feared being replaced and bankrupted by a powerful monopoly. The East India Company's decision to grant franchises to certain American merchants for the sale of their tea created further resentments among those excluded from this lucrative trade. More important, however, the Tea Act revived American passions about the issue of taxation without representation. The law provided no new tax on tea...
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