KARTELL Meaning and
Definition
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Kartell is a noun in the Italian language that refers to a cartel, a form of organization or agreement between businesses or companies operating in the same industry. It typically involves a group of companies collaborating to control supply, manipulate prices, and maintain dominance in the market.
In a kartell, these companies often work together to establish industry standards, allocate market shares, and eliminate or limit competition. Such collaborations are usually created to maximize profits and maintain a de facto monopoly or oligopoly. Kartells are characterized by the collective decision-making power of the members, who agree on quotas, pricing strategies, and market interventions that benefit all involved parties.
While kartells may have short-term benefits for the businesses involved, they often have negative consequences for consumers and smaller competitors, as they can lead to price fixing, reduced product diversity, and hindered innovation. Kartell agreements are generally illegal in most countries due to their monopolistic or anti-competitive nature, as they hinder fair market competition and consumer choice. This makes kartells subject to legal scrutiny, with governments and regulatory bodies actively seeking to prevent and punish such practices.
The term "kartell" originated from the German term "Kartell" that means 'cartel' or 'combination' and was introduced to the Italian language during the late 19th and early 20th centuries.
Etymology of KARTELL
The word "kartell" is derived from the Italian word "cartello", which means "board" or "placard". The term was used in the 19th century to refer to organized groups or associations of individuals involved in a specific business or industry. The Italian term "cartello" itself can be traced back to the Latin word "charta", meaning "paper" or "document". Over time, the meaning of "kartell" expanded to refer to monopolistic or collusive associations of businesses aiming to restrict competition and exert control over prices and markets. The term gained significant attention during the early 20th century, particularly in reference to the German "Kartellgesetz" (Cartel Law) implemented in Germany to regulate such associations.
