CARTEL
A combination of producers of any product joined
together to control its production, sale, and price,
so as to obtain a MONOPOLY and restrict competi-
tion in any particular industry or commodity.
Cartels exist primarily in Europe, being illegal in
the United States under ANTITRUST LAWS.Also,
an association by agreement of companies or sec-
tions of companies having common interests,
designed to prevent extreme or UNFAIR COMPETI-
TION and allocate markets, and to promote the
interchange of knowledge resulting from scientific
and technical research, exchange of patent rights,
and standardization of products.
In war, an agreement between two hostile
powers for the delivery of prisoners or deserters, or
authorizing certain nonhostile intercourse
between each other that would otherwise be pre-
vented by the state of war, for example, agreements
between enemies for intercommunication by post,
telegraph, telephone, or railway.
Although illegal in the United States, foreign
cartels influence prices within the United States
on imported and smuggled goods that they con-
trol. The United States has sued the De Beers
diamond cartel several times, and works to stop
the flow of illegal narcotics, whose production
and distribution are largely controlled by drug
cartels.
