Cartel
In short
A cartel is a group of independent companies or producers that join together to control the supply and price of a specific product. By acting as a single monopoly, they prevent competition to increase their own profits.
In plain words
Instead of fighting for customers, businesses in a cartel make secret deals to keep prices high. They agree to limit how much they produce so that the item stays expensive and hard to find.
A simple example
Three large oil companies might agree to only produce a certain amount of fuel each month. This artificial shortage forces everyone to pay much higher prices at the petrol station.
Why it matters
Cartels hurt consumers by removing the choice of cheaper alternatives. They can also destabilise entire economies by manipulating the cost of essential goods like food or energy.
Easy to mix up
Do not confuse a business cartel with a criminal drug cartel, though both use illegal force to control markets.