Dividing territories

Competition law

Basic concepts

* History of competition law
* Monopoly and oligopoly
* Coercive monopoly
* Natural monopoly
* Tacit collusion
* Barriers to entry
* Herfindahl–Hirschman Index
* Market concentration
* Market power
* SSNIP test
* Relevant market
* Merger control

Anti-competitive practices

* Monopolization
* Collusion
* Formation of cartels
* Price fixing
* Bid rigging
* Product bundling and tying
* Refusal to deal
* Group boycott
* Essential facilities
* Exclusive dealing
* Dividing territories
* Conscious parallelism
* Predatory pricing
* Misuse of patents and copyrights

Enforcement authorities and organizations

* International Competition Network
* List of competition regulators

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* t
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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

* Regional lockout
* Market allocation scheme

## References

1. ↑ Antitrust Resource Manual 8 Identifying Sherman Act Violations
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. http://www.ftc.gov/opa/2000/12/fmc.htm.

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