árkartell

árkartell, or price cartel, is a collusive agreement among competing firms to fix, raise, or stabilize the price of goods or services, or to coordinate related sale terms. Cartels may set uniform prices, establish fixed markups, or agree on price lists, surcharges, or discounts. They may also coordinate quantities or market shares to influence price levels indirectly.

Common methods include direct agreements among rivals, exchange of sensitive pricing information through meetings or trade associations, and bid-rigging or market-sharing arrangements intended to reduce price competition. By eliminating or limiting true competition, such conduct can maintain profits at the expense of consumers and other market participants.

Legally, árkartell is illegal in most jurisdictions under competition or antitrust laws. Authorities such as the European Commission and national competition agencies (and in the United States, the Department of Justice) impose fines, criminal penalties for individuals, and civil damages. Leniency programs and immunities are often offered to first informants or participants who cooperate.

Effects and examples: price cartels generally lead to higher prices, reduced output, weaker innovation, and distorted market signals. They are difficult to sustain without detection and are frequently the subject of investigations and prosecutions. Notable cases include historical price-fixing in the vitamins industry and other sectors, resulting in substantial penalties.

Etymology: the term derives from Hungarian ár meaning price and kartell meaning cartel.