A market division by class of customer between rival firms violates antitrust law.

Question

Quizplus · Accepted Answer

Market division or customer allocation agreements between competitors are considered per se illegal under antitrust law as they eliminate competition and create a monopoly-like situation in the market. It is because these types of agreements undermine market efficiency, stifle innovation, and lead to higher prices for consumers. Therefore, such practices are not allowed under antitrust laws.

A Market Division by Class of Customer Between Rival Firms