A vertical allocation of customers or territory is only illegal if competition to the markets as a whole is adversely affected.

Question

Quizplus · Accepted Answer

A vertical allocation of customers or territory is only considered illegal if it impacts competition in the overall market. Vertical allocations that do not restrict competition in the market as a whole may be considered legal under certain circumstances. However, if such an allocation harms competition in any way, it may be deemed illegal under antitrust laws.

A Vertical Allocation of Customers or Territory Is Only Illegal