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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
Abel Alvarado, CNN Money, 5 Apr. 2025
Many of the artists now topping the charts have come under fierce criticism because their lyrics often paint cartel leaders as Robin Hood-esque figures.
—CBS News, 3 Apr. 2025
Barraza plays Donna, a ruthless cartel boss, hell-bent on sabotaging Hank’s efforts for her own nefarious purposes.
—Matt Grobar, Deadline, 2 Apr. 2025
Romero-Hernandez then gave that information to Jose Osvaldo Zapata-Vasquez, 25, who was also a Mexican national and had ties to the cartel, prosecutors said.
—Kate Linderman, Fort Worth Star-Telegram, 1 Apr. 2025
See All Example Sentences for cartel
Cite this Entry
“Cartel.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cartel. Accessed 9 Apr. 2025.
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cartel
noun
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