What type of antitrust violation occurs when companies agree to divide their market to avoid competition?

The type of antitrust violation that occurs when companies agree to divide their market to avoid competition is known as market allocation. This involves companies coordinating to designate specific geographic or product territories to each other, reducing competition by agreeing not to compete in certain areas. Such arrangements can lead to higher prices, limited choices for consumers, and ultimately harm the market's competitive nature.

In contrast, group boycotting involves companies colluding to refuse service to a competitor or supplier, while price fixing refers to agreements among competitors to set prices at a certain level, undermining the free market principles. Tie-in arrangements occur when a seller requires buyers to purchase additional products or services as a condition for obtaining a desired product, which can also hinder competition but are distinct from market allocation practices.