Market division schemes, or customer allocation schemes, are anticompetitive agreements where companies divide markets amongst themselves with the understanding that competitors do not compete within one another.
For example, anticompetitive market division schemes occur when competitors divide up customers or types of customers, determining who can sell to which customers. In other cases, conspirators will allocate certain geographic areas for each competitor, and refuse to sell to, or quote intentionally high prices to, customers in geographic areas allocated to conspirator companies.
Laws Prohibiting Market Division Schemes
Under federal and some state laws, private parties (businesses or consumers) who were harmed by anticompetitive conduct can bring antitrust lawsuits seeking damages (in some instance treble damages) and injunctive relief.
Victim of a Market Division Antitrust Violation?
Speak with an antitrust attorney. All communications with our law firm are confidential and protected by the attorney-client privilege.
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