What antitrust violation are the licensees committing by discussing their territory division?

Discussing territory division among licensees constitutes a violation of antitrust laws related to market allocation. This type of agreement occurs when businesses collectively decide how to split markets or consumers among themselves, which fundamentally restricts competition. By designating specific territories for each licensee, they are agreeing not to compete in those designated areas, thereby reducing consumer choice and preventing new entrants from competing in the market.

Market allocation agreements are particularly scrutinized by antitrust authorities because they can lead to monopolistic behaviors and higher prices for consumers. This activity undermines the principle of free competition, which is central to maintaining a healthy marketplace.

While the other options pertain to different types of antitrust violations—such as price fixing, where companies agree to set prices, group boycotting, where businesses agree not to do business with a particular entity, or bid rigging, where bidders collude to decide who will win contracts—the core issue at play in this case is the division of territory, which clearly aligns with market allocation violations.