This way, the Situation will start:

A location will be set as a fixed point to divide the world, and from that onwards, each of the countries will have a ‘sphere of influence’ in which it will be able to Claim Areas. The area in which the initial colonies will be granted to each country, and from there on, they will be able to Claim Areas that are adjacent to those initial claims. If two colonies were present in the same area, then the ‘Claim a Conflicting Area’ would be available to both countries. You can also try to Revoke a Claim from the other country, but that requires to request it to the Pope. The Claims ban colonization by other Catholic countries, but you will still have to colonize those areas using the regular game mechanics.