Definition of collusion
- acting in collusion with the enemy
The company was acting in collusion with manufacturers to inflate prices.
there was collusion between the two companies to fix prices
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.
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.
Collusion is illegal because it interferes with the natural market forces of supply and demand and harms consumers by inhibiting competition.
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