Market division

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Market division, in an antitrust or competition policy context, typically refers to an agreement amongst (horizontal) competitors to allocate or divide the market. Competitors will divide the market and sell exclusively in their pre-allocated region. Thus, consumers in a particular region do not benefit from competition and suppliers are free to act as monopolists within their allocated market because their competitors refuse to sell in those regions. Such types of agreements are illegal in the United States and in many other jurisdictions across the world.