Horizontal territorial allocation
- Horizontal territorial allocation
Horizontal territorial allocation is an agreement among competitors at the same level of distribution of a product or service to solicit customers only within a certain geographic area. The competitors who agree to this type of arrangement will often reject business from customers in another's territory. Territorial allocation scheme results in an absence of competition in prices and choice of products for the affected customers. [ [http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title7/ant00008.htm Antitrust Resource Manual 8 Identifying Sherman Act Violations ] ]
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