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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.
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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.
Examples of cartel in a Sentence
Michael Sinkewicz, FOXNews.com, 27 May 2026
That committed enemies of monopolization have built a sort of cartel might seem ironic, but perhaps the neo-Brandeisians have a keener appreciation than most of the power of cornering a market.
—Jonathan Chait, The Atlantic, 26 May 2026
To reward Rue’s professed desire to swap sides, the cartel threatens her with all manner of violence before slicing her palm open with a knife.
—Daniel D'addario, Variety, 25 May 2026
Ecuador has struggled to contain drug violence since 2021 as rival cartels partner with local gangs and battle for control of routes and coastal ports used to smuggle cocaine.
—ABC News, 24 May 2026
See All Example Sentences for cartel
Cite this Entry
“Cartel.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cartel. Accessed 2 Jun. 2026.
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cartel
noun
