Dividing territories
Competition law |
---|
Basic concepts |
Anti-competitive practices |
Enforcement authorities and organizations |
Dividing territories, market division or horizontal territorial allocation is an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories. The process known as geographic market allocation is one of several
antitrust
regulation.
For example, in 1984,
FMC Corp. and Asahi Chemical agreed to divide territories for the sale of microcrystalline cellulose, and later FMC attempted to eliminate all vestiges of competition by inviting smaller rivals also to collude.[2]
See also
References