Customer allocation and territory allocation allegations arise when competitors are said to have divided the market among themselves. Prosecution for customer and territory allocation occurs when the Antitrust Division of the United States Department of Justice or the Federal Trade Commission Bureau of Competition believe specific customers or categories of customers, territories, or products have been split between competing firms.
For example, a federal agent may think one conspirator was permitted to sell to certain customers or participate in particular bidding competitions, while, in exchange for this, forgoing selling to other customers and engaging in other bidding opportunities allocated to other co-conspirators.
Market division or allocation schemes may involve bidding or quoted prices for services or goods, and can be prosecuted criminally if they occurred, in whole or in part, within the past five years.
Customer and territory allocation is prohibited by section one of the Sherman Act, which carries a maximum fine of $100 million for a corporation. Victims of such alleged conspiracies may also receive up to twice the gain or loss derived from the alleged crime, if either of those amounts happen to be greater than the statutory maximum.
Courts generally permit limited non-compete clauses, but not those that "divide markets with no offsetting pro-competitive purpose".
When you are facing accusations of market allocation and anti-competitive conduct, you need to secure the best team of Antitrust Attorneys you can - one with the resources, wisdom, and expertise to argue your case in court effectively or get those charges dismissed outright.
The Blanch Law Firm has this experience. Contact one of our seasoned Antitrust Attorneys today by calling 212-736-3900 . Your initial consultation is both free and confidential.