collusion

noun col·lu·sion \ kə-ˈlü-zhən \
Updated on: 13 Oct 2017

Definition of collusion

:secret agreement or cooperation especially for an illegal or deceitful purpose
  • acting in collusion with the enemy

collusive

play \kə-ˈlü-siv, -ziv\ adjective

collusively

adverb

Examples of collusion in a Sentence

  1. The company was acting in collusion with manufacturers to inflate prices.

  2. there was collusion between the two companies to fix prices

Recent Examples of collusion from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'collusion.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of collusion

Middle English, from Anglo-French, from Latin collusion-, collusio, from colludere — see collude


Financial Definition of COLLUSION

collusion

What It Is

Collusion, also known as price rigging or price fixing,  occurs when several individuals and/or businesses agree to set the price for something.

How It Works

For example, let’s assume that there are four major cable providers in the U.S. The four companies meet secretly and agree not to compete with one another for customers in certain geographic areas of the country. To accomplish this, they agree on which of the four providers will "get" each territory by offering the best price or service in that territory. The other three firms agree to not offer a lower price in that territory. In return, each of the three other firms get their own territory with the same agreement. By doing this, the four providers ensure that no other competitors will enter the markets, thereby preserving their profits and territories as a whole.

In the stock market, traders with inside information might collude on trades in order to benefit from the inside information.

Why It Matters

Collusion is illegal because it interferes with the natural market forces of supply and demand and harms consumers by inhibiting competition.


COLLUSION Defined for English Language Learners

collusion

noun

Definition of collusion for English Language Learners

  • : secret cooperation for an illegal or dishonest purpose


Law Dictionary

collusion

noun col·lu·sion \ kə-ˈlü-zhən \

legal Definition of collusion

:the act or an instance of colluding

collusive

play \-siv\ adjective


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