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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
Alex Riggins, San Diego Union-Tribune, 11 June 2025
Our heavily armored alien menace starts taking out drug cartel goons and making a mess, and a couple of cops (Danny Glover and Bill Paxton) plus an unhinged DEA agent (Gary Busey) are on the case to investigate.
—Brian Truitt, USA Today, 7 June 2025
The Supreme Court ruled unanimously Thursday in favor of U.S. gun manufacturers and blocked a liability lawsuit brought by the government of Mexico, which sought to hold the companies accountable for the trafficking of their weapons south of the border to fuel violence by the cartels.
—Devin Dwyer, ABC News, 5 June 2025
Round Valley, which is surrounded by mountains, is now rife with illicit cannabis and cartel activity as well as murders, Kendall said.
—Louis Casiano, FOXNews.com, 4 June 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 20 Jun. 2025.
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cartel
noun
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