A regional cartel is characterized by the fact that the participating companies divide the region in which they operate into certain areas. Each company then masters one of the sub-areas.
The problem with a territorial cartel is that there can be no competition in the subdivided regions because the companies have full control over the goods, quantities and prices offered. The lack of competition puts consumers at a disadvantage.
With such a division, the areas can be of different types. They can refer to entire federal states (for companies operating nationwide) or to individual city districts with a regional focus of the actors.
Regional cartels are prohibited according to the Act against Restraints of Competition (Section 1 GWB) and are dated Cartel Office fights.