Competitors are expected to compete with each others; competition creates efficiency, encourages innovation, improves quality, reduces costs and prices, gives choice to consumers at lower prices and so on and so forth. If competitors collude, it becomes cartel. Cartels are considered as the most harmful violation of competition law globally. Cartels may earn profits at monopoly levels; however, their losses to consumer, society, economy and business are enormous. This article discusses cartel, its harm on consumers, economy and business. It also highlights the quantum of penalties imposed in some of the major cartel cases in India. This article also suggests steps business should take to avoid being a party to cartels.

Keywords: Business; Cartel; Competition.