Décartelization

Décartelization refers to the process of breaking up or dismantling cartels. A cartel is an association of manufacturers or other businesses that agree to control prices, production, and market share. These agreements are typically anti-competitive and illegal in many jurisdictions. The goal of décartelization is to restore competition to the market, which is believed to benefit consumers through lower prices, greater choice, and increased innovation.

Governments and regulatory bodies often initiate décartelization efforts through antitrust or competition laws. These actions can take various forms, including investigations into suspected cartel activities, the imposition of fines on member companies, and legal orders to dissolve the cartel. In some cases, décartelization might involve divestiture, where companies are forced to sell off certain assets or business units to prevent ongoing collusion. The success of décartelization depends on effective enforcement and the ability to deter future cartel formation. The term is also used in a broader sense to describe any action that leads to the dissolution of an agreement that restricts competition.