Cartel

noun

/kɑːˈtɛl/

A formal or informal agreement between competing enterprises to coordinate their behaviour in the market — typically involving price-fixing, bid rigging, output restriction, or market allocation — with the aim of reducing competition and increasing profits at the expense of consumers. Cartels are treated as the most serious form of anti-competitive conduct and attract the highest penalties under competition law.

✍️ Usage in a UPSC answer

When a handful of dominant firms quietly coordinate prices, the resulting cartel hollows out consumer welfare and erodes the competitive efficiency that anti-trust law is meant to safeguard, which is precisely why the Competition Commission of India treats cartelisation as a per se contravention.

Synonyms

syndicatecombinetrustmonopolyconsortiumbloc

Antonyms

competitorfree marketcompetition

🌱 Word Family

cartel (n), cartels (n pl), cartelise (v), cartelisation (n), cartelised (adj)

🔡 Root

German Kartell, from French cartel = written challenge; Italian cartello = placard; Latin charta = paper; Greek khartēs = papyrus

📜 Etymology

From German Kartell, from French cartel ("written challenge, letter of defiance"), from Italian cartello ("placard, written challenge"), diminutive of carta ("card, paper"), from Latin charta ("leaf of paper"), from Greek khartēs ("layer of papyrus").

🧠 Memory Hook

Picture firms slapping a price "card" (Latin carta) on the table and agreeing to a fixed deal — a CART-of-CARDs collusion that rigs the market.

💰 Indian Economy 📖 Seen in: Competition Policy & Consumer Protecti...

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