Arrangement(s) between competing firms designed to limit or elimi- nate competition between them, with the objective of increasing prices and profits of the participating companies and without produc- ing any objective countervailing benefits. In practice, this is generally done by fixing prices, limiting output, sharing markets, allocating customers or territories, bid rigging or a combination of these specific types of restriction. Cartels are harmful to consumers and society as a whole due to the fact that the participating companies charge higher prices (and earn higher profits) than in a competitive market.
Source: Glossary of terms used in EU competition policy, Antitrust and control of concentrations, European Commission, 2002