Customer and territorial restrictions are per se antitrust violations.

Question

Quizplus · Accepted Answer

Customer and territorial restrictions may or may not be antitrust violations depending on the context, market power, and potential anti-competitive effects. Some agreements, such as exclusive dealing, tying, or price-fixing, may violate antitrust laws if they restrict competition, harm consumers, or undermine market efficiency. However, other agreements, such as franchising, licensing, or selective distribution, may be pro-competitive and enhance consumer welfare by promoting innovation, quality, and service. Thus, the legality of customer and territorial restrictions depends on a case-by-case analysis of their purpose, scope, and effects under the relevant antitrust laws.

Customer and Territorial Restrictions Are Per Se Antitrust Violations