Antitrust » Antitrust Market Division Scheme

Antitrust Market Division Scheme

About Anticompetitive Customer Allocation Schemes

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

Anticompetitive market division schemes violate federal antitrust law, notably the Sherman Antitrust Act, and are prohibited by state antitrust law, including the Cartwright Act in California.

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?

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