Allocation of customers, suppliers or territories | Practical Law

Allocation of customers, suppliers or territories | Practical Law

Allocation of customers, suppliers or territories

Allocation of customers, suppliers or territories

Practical Law ANZ Glossary w-010-9440 (Approx. 2 pages)

Glossary

Allocation of customers, suppliers or territories

A form of cartel conduct also known as market sharing, when competitors arrange to divide or allocate customers, suppliers or territories amongst themselves rather than allowing competitive market forces to function.
It can occur for example by allocating customers based on geographic location or dividing contracts by value between competitors, and is prohibited per se under Division 1 of Part IV of the Competition and Consumer Act 2010 (Cth) (CCA) (see in particular section 45AD(3)(b) (previously 44ZZRD(3)(b)), CCA).