Dividing territories
From Wikipedia, the free encyclopedia
Dividing territories is an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories. It is one of several anti-competitive practices outlawed in the United States. The term is generally understood to include dividing customers as well.
For example, in 1984 FMC and Asahi Chemical agreed to divide territories for the sale of MCC, and later FMC attempted to eliminate all vestiges of competition by inviting smaller rivals also to collude. [1]