ABSTRACT
In the context of business, the word “cartel” is generally used to describe a certain form of collaborative association, an example being that of a business cartel composed of various enterprises cooperating with each other on business-related objectives such as maintaining market prices by agreeing to restrict production output. Because of the possibility that enterprises may collaborate to engage in monopolistic behavior that would be detrimental to the interests of consumer welfare and competition, most competition laws that are currently enforced ban or strictly limit the formation of cartels. However, as this chapter will show, it has not always been the case that cartels have been looked upon negatively by governments. Examples will also be given in this chapter where the formation of cartels has actually been allowed in special cases such as to promote exports or protect domestic industries and even encouraged as a means to promote a state’s national interests as perceived by its leaders.
