What is market allocation and how is it illegal?

Market allocation is a violation of antitrust law in Texas. It is an agreement made between competing businesses to illegally divide up the market for a particular product or service. The companies will typically agree to not compete in certain areas or only market to certain customers. This reduces competition in the marketplace and keeps prices higher than they would be if the companies competed fairly. The problem with market allocation is that it limits consumer choice. The prices are kept artificially high and consumers miss out on the benefits with lower prices that often come from increased competition. This can mean that consumers are paying more than necessary for a product, and they suffer the financial loss as a result. Market allocation is illegal in Texas and many other places due to antitrust laws. These laws are in place to protect consumers from these unfair practices and promote healthy competition between businesses. The Federal Trade Commission, Department of Justice, and state attorneys general have the authority to investigate and prosecute companies found to be engaging in market allocation. This helps to ensure that these unfair practices are identified and stopped, and that consumers are not forced to pay more than necessary.

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What is market allocation and how is it illegal?

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