What are the negative impacts of cartels that have led to their prohibition in many countries?

[Suba]

Legally, cartel practices are prohibited in many countries by antitrust regulations, so businesses found to operate cartels are subject to imprisonment and fines.

A cartel is a form of cooperation/agreement, either formal or informal, between several business entities to control the market, regulate prices, and increase profits. There are several types of cartels, such as those based on territory, price, production, etc.

 

[King Belieal]

Cartels are almost like monopolies but are more powerful. They would always price products so high and eliminate competition. That's why they are banned in many countries.

 

[Augusta]

The Problem is that cartels undermine competition, leading to higher prices and reduced innovation

 

[Starmix]

That could be one factor why the prices in the market never go down because of the market cartels. They might be controlling the prices to go up not down because of personal gain.

 

[Fidelia]

Cartels don't allow markets to thrive fairly. They push the market to function by their own terms. That is why people hate them.