When competitors agree to divide or allocate customers, suppliers or territories among themselves they are sheltering from competition, denying consumers the benefit of choice and engaging in cartel conduct.
Such actions include:
allocating customers by geographic area
dividing contracts by value within an area
agreeing not to compete for established customers
agreeing not to produce each other’s products or services
agreeing not to expand into a competitor’s market.
The key is that competitors agree among themselves how the market will operate, rather than allow competitive market forces to work.
