What is the violation of antitrust laws where competitors agree to divide markets called?

The violation of antitrust laws where competitors agree to divide markets is known as market or customer allocation. This practice occurs when businesses, usually in the same industry, come to an agreement not to compete in specific geographical areas or to allocate customers amongst themselves. The intent behind this kind of arrangement is to reduce competition, which can lead to higher prices and less choice for consumers.

Market or customer allocation is illegal because it undermines the fundamental principles of free market competition. By engaging in this kind of agreement, companies attempt to control a significant part of the market, which can harm both consumers and other businesses. This is distinct from other antitrust violations, such as price-fixing, where competitors agree on the pricing of their products or services. Market manipulation generally refers to deceptive practices that influence the pricing of securities rather than dividing up markets, while collusion broadly encompasses any secret agreements between businesses to manipulate market conditions. Therefore, the specific term for the act of dividing markets is market or customer allocation, making it the correct answer.