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It is illegal due to being part of the anti-trust, monopolistic features. Though you could probably work around it with how you do deliveries, such as pizza places only deliver so far out. Meaning that you do not have delivery of your product to that region, or you charge extra for it but it would have to be a radial distance thing as to not gerrymandering it and that would be barking up the anti-trust crap.
I am not a lawyer just giving you some advice