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 anti-competitive practices outlawed under United States antitrust laws. The term is generally understood to include dividing customers as well. The competitors who agree to this type of arrangement will often reject business from customers in another's territory. Territorial allocation scheme results in an absence of competition in prices and choice of products for the affected customers.[1] Such agreements can be illegal under 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]
^"FTC Order Settles Charges that FMC Corp. and Japan's Asahi Chemical Co. Engaged in Illegal Anticompetitive Practices - Federal Trade Commission". 21 December 2000.
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dividing, territories, market, division, horizontal, territorial, allocation, agreement, companies, stay, each, other, reduce, competition, agreed, upon, territories, process, known, geographic, market, allocation, several, anti, competitive, practices, outlaw. 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 anti competitive practices outlawed under United States antitrust laws The term is generally understood to include dividing customers as well The competitors who agree to this type of arrangement will often reject business from customers in another s territory Territorial allocation scheme results in an absence of competition in prices and choice of products for the affected customers 1 Such agreements can be illegal under 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 EditRegional lockout Market allocation schemeReferences Edit Antitrust Resource Manual 8 Identifying Sherman Act Violations FTC Order Settles Charges that FMC Corp and Japan s Asahi Chemical Co Engaged in Illegal Anticompetitive Practices Federal Trade Commission 21 December 2000 nbsp This law related article is a stub You can help Wikipedia by expanding it vte nbsp This business related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Dividing territories amp oldid 1138921647, wikipedia, wiki, book, books, library,
