A cartel is a group of businesses who cooperate to limit competition. They may set prices or market share, or allocate customers or territories. A cartel is similar to a monopoly, but a monopoly is dominance by a single entity. Both are illegal under antitrust laws in the US and under competition laws in Europe.
In modern times the best known cartels are OPEC, The Organization of Petroleum Exporting Countries, the global oil cartel, and DeBeers, the diamond cartel. Both are able to function by keeping operations out of countries with strong laws.
In the late nineteenth century, cartels were common, especially in international trade.
Related Fool Articles
Recent Mentions on Fool.com
- Dow Drops on Geopolitical Day, but Morgan Stanley and Google Report Earnings
- Less Demand for OPEC Oil as Other Sources Increase Supply
- Why Potash Producers Should Be Worried About This Development
- No Port of Call for BHP Billiton
- Uber and Lyft Are Not a Threat to Medallion Financial's Mojo
- Defense News Roundup: Lockheed Martin Is Watching You, and Sikorsky Takes on the Drug Cartels