What is market allocation and how is it illegal?

Market allocation is an illegal practice that occurs when two or more companies in a market agree not to compete with one another by allocating specific areas or customers to each other. This practice is illegal because it reduces competition, which can lead to higher prices for consumers and fewer choices of goods or services. In Delaware, the law concerning market allocation is governed by the Delaware Antitrust Act of 1987. This law prohibits any agreements between two or more businesses that restrain trade or competition, such as market allocation, price-fixing, or any other form of collusion. Any violations of this law are considered serious offenses and may result in fines, imprisonment, or both. Essentially, market allocation represents agreements between companies to not compete in a certain market and results in less competition, leading to higher prices. This practice is illegal in Delaware and is punishable by potential fines and jail time.

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What is market allocation and how is it illegal?

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