Cartelization is a practice prohibited by European competition law. It consists of agreeing on a joint action to limit competition and its beneficial effects for customers. The cartel usually involves several producers of services or products who are market leaders.
Cartelization is a practice that is now considered anti-competitive. Indeed, the autonomy of the behavior of economic operators is the very basis of the market economy. Among all the existing forms of agreement, the one on the prices of products or services remains the most common.
The producers agree to apply the same pricing policy and undertake not to go below the fixed rate. Coordinating their actions in this way allows them to effectively lock in the market.