Dividing territories is an agreement by two companies to stay out of each other's way and reduce competition in the agreed-upon territories. It is one of several anti-competitive practices

Anti-competitive practices

Anti-competitive practices are business or government practices that prevent or reduce competition in a market .- Anti-competitive practices :These can include:...

 outlawed in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

. The term is generally understood to include dividing customers as well.

For example, in 1984 FMC Corp.

FMC Corp.

FMC Corporation is a chemical manufacturing company headquartered in Philadelphia, Pennsylvania. FMC employs over 4,800 people world wide, and had gross revenues of US$3.115 billion in 2008.-The Bean Spray Pump Company:...

 and Asahi Chemical agreed to divide territories for the sale of microcrystalline cellulose

Microcrystalline cellulose

Microcrystalline cellulose is a term for refined wood pulp and is used as a texturizer, an anti-caking agent, a fat substitute, an emulsifier, an extender, and a bulking agent in food production. The most common form is used in vitamin supplements or tablets...

, and later FMC attempted to eliminate all vestiges of competition by inviting smaller rivals also to collude.