cartel

noun

car·​tel kär-ˈtel 

1

: a written agreement between belligerent nations

2

: a combination of independent commercial or industrial enterprises designed to limit competition or fix prices

illegal drug cartels

3

: a combination of political groups for common action

Did you know?

The literal meaning of Italian cartello, a derivative of carta, “leaf of paper,” is “placard.” The word is also used for a letter of defiance or a challenge. In this sense the Italian word was borrowed into Middle French as cartel, and the French word was borrowed into English. In English, a cartel was originally a letter of defiance. Later the word came to be used for a written agreement between warring nations to regulate such matters as the treatment and exchange of prisoners. Another type of agreement, a combination of commercial enterprises, is now called a cartel.

Did you know?

A cartel is an organization of a few independent producers for the purpose of improving the profitability of the firms involved. This usually involves some restriction of output, control of price, and allocation of market shares. Members of a cartel generally maintain their separate identities and financial independence while engaging in cooperative policies. Cartels can either be domestic or international. Because cartels restrict competition and result in higher prices for consumers, they are outlawed in some countries. The only industry operating in the U.S. with a blanket exemption from the antitrust laws is major-league baseball.

Synonyms

• combination
• combine
• syndicate
• trust

Examples of cartel in a Sentence

a cartel of oil-producing nations that controls production and influences prices

Recent Examples on the Web

The history of law enforcement actions against big banks such as TD Bank have resulted in large fines such as, in 2012 when HSBC was fined $1.9 billion for laundering money for drug cartels, terrorist organizations and sanctioned countries such as Iran and North Korea. —Steve Weisman, Forbes, 12 Oct. 2024

Even the glitzy bars, exclusive car dealerships and plastic surgery boutiques catering to cartel lieutenants and their entourages are mostly closed. —Tribune News Service, The Mercury News, 9 Oct. 2024

The court also will decide whether a federal law prevents Mexico from suing gun distributors for allegedly facilitating the flow of firearms to drug cartels. —Andrew Torgan, CNN, 6 Oct. 2024

Both the cartels and the government have a stake in how water is used. —Outside Online, 2 Oct. 2024

Word History

Etymology

French, letter of defiance, from Old Italian cartello, literally, placard, from carta leaf of paper — more at card entry 1

First Known Use

1692, in the meaning defined at sense 1

Kids Definition

cartel

noun

car·​tel kär-ˈtel 

: a combination of business firms to control world markets and fix prices