turujaotus

Turujaotus, or market allocation, is a term used in Finnish competition law to describe an agreement between competing firms to divide markets, customers, or geographic areas in order to reduce competition. Such arrangements can be explicit contracts or tacit understandings, and they typically aim to secure stable market shares, predictable pricing, or easier bidding.

Forms of turujaotus include geographic allocation (one firm serves a defined region, another a different one), customer allocation (distinct customer groups or sectors are assigned to specific suppliers), or product-line division (different products are restricted to separate sellers). It can be implemented directly in bids, distribution arrangements, or through coordinated pricing that supports the market division.

Legally, market-sharing agreements are treated as restraints of competition in many jurisdictions. In the European Union and Finland, they are generally prohibited under competition law and are typically regarded as restrictions by object rather than requiring proof of actual effects, because they harm consumer choice and price formation. Some jurisdictions provide leniency programs for whistleblowers.

Enforcement and consequences: National competition authorities (in Finland, Kilpailu- ja kuluttajavirasto) and the European Commission investigate suspected turujaotus. Penalties can include substantial fines, orders to cease the conduct, civil damages claims, and, in some cases, liability for individuals.

Examples: Market allocation has historically occurred in various sectors, with firms agreeing to operate in separate territories or serve distinct customer groups to limit competition. The practice is generally regarded as harmful to competition and is typically prohibited.

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