Monopoly Agreements

Monopoly agreements are contractual arrangements between companies that cooperate to divide markets, fix prices, or limit competition. These agreements can involve sharing territories, fixing product prices, or coordinating strategies, reducing the competitive pressure that typically benefits consumers through lower prices and innovation. While some forms are legal in certain contexts, most monopoly agreements are considered anti-competitive and illegal under competition laws (antitrust laws) because they can lead to monopolies or dominant positions that harm market fairness and consumer choice. The purpose is to maintain control and maximize profits, which can undermine a competitive, dynamic marketplace.