In this way, it also promotes entrepreneurship and encourages more and more people to start up. Thus, companies are effectively able to eliminate competitions through market distribution. Illegal market distribution/customer distribution violates companies by eliminating competition for markets and customers. They also harm consumers by allowing conspiracy companies to charge them prices uncontrolled by the natural forces of supply and demand of an unmanipulated market. If, as a business or consumer, you have suffered financial losses as a result of an illegal contracting or customer awarding system, contact us today to schedule an evaluation of your case at no cost. Market allocation is a form of agreement not to compete. Non-competition agreements that inappropriately impede competition may be contrary to federal and national cartel law. The awarding of the contract is a scheme or agreement guaranteeing that all companies seek their own business without interrupting others, especially their competitors. It encourages anti-competitive activities. Indeed, all competitors who are present in a single market agree on a mandate, and it does not matter, they will always stay out of the way they market and do business.
All companies that accept the contracting regime should now bear in mind that a violation of this agreement is punishable. A company that violates the agreement may be subject to criminal prosecution under Section 1 of the Sherman Act. They will be the target of the investigation and if found guilty, they will be punished legally. In general, the distribution of the market is nothing more than an agreement used to ensure the activity of all companies trying to establish themselves in the same market. It is an agreement that supports the anti-competitive system. Thus, with regard to the distribution of the market, the agreement is concluded in such a way that a single market, in which different competitors are present, will segment the whole market. And then each of them will use their own business and marketing strategy to increase their sales and profit margins. Specific activities are limited to different conditions, which can be based either on geographic locations or on the segmentation of demographic factors on several factors or domains.