| gen. |
market division (Dividing territories (also market division) 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. 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. WK Alexander Demidov); dividing territories (WK Alexander Demidov); geographic market allocation (An agreement between competitors not to compete within each other's geographic territories. These include price fixing, creating an illegal monopoly, geographic market allocation and bid rigging. | Another aspect of business that falls under this is geographic market allocation. This means that competitors cannot agree not to encroach on each other's territory and sell their products. This prevents the company from having a monopoly on the market in that area. Alexander Demidov) |
