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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
Fidel Martinez, Los Angeles Times, 14 Feb. 2025
The executive order equates these cartels with organizations like the Islamic State militant group (ISIS) and Al-Qaeda, broadening legal tools for the U.S. to combat cartel operations but raising fears of unintended consequences.
—Dan Perry, Newsweek, 13 Feb. 2025
Rampant crime has transformed the once tranquil country into one plagued by violence and turf wars between drug cartels.
—Max Saltman, CNN, 12 Feb. 2025
In 2023, federal prosecutors unsealed sprawling indictments against dozens of members of the cartel, including the brothers, in a fentanyl-trafficking investigation.
—Greg Wehner, Fox News, 11 Feb. 2025
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Cite this Entry
“Cartel.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/cartel. Accessed 20 Feb. 2025.
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cartel
noun
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