Friction-Lube Corporation and Grease Inc. are the principal suppliers of their products in their market. They agree that Friction-Lube will sell exclusively to retailers and Grease will sell exclusively to wholesalers. Under antitrust law, this market division is most likely

Question

Friction-Lube Corporation and Grease Inc. are the principal suppliers of their products in their market. They agree that Friction-Lube will sell exclusively to retailers and Grease will sell exclusively to wholesalers. Under antitrust law, this market division is most likely​

Quizplus · Accepted Answer

Market division is considered a per se violation of antitrust law because it eliminates competition and allows the suppliers to control prices and output. The fact that they agreed on exclusivity to different types of customers does not change the fact that it restricts competition in the market.