Cartel vs. Syndicate: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
Cartel is an association of independent businesses organized to control prices and production in an industry. Syndicate is a group of individuals or organizations combined to promote a common interest.
Key Differences
A cartel is typically a formal agreement between competing firms in the same industry, aiming to regulate aspects like prices, production, and market shares. In contrast, a syndicate is a more general term, referring to a group or alliance formed to carry out a specific business project or to promote a common interest. While cartels are often seen in industries like oil or pharmaceuticals, syndicates are common in finance, media, or real estate.
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Nov 17, 2023
The primary objective of a cartel is to maximize profits by reducing competition. This is usually achieved through agreements on price-fixing, limiting production, or dividing markets. Syndicates, however, are formed for a broader range of purposes. They may pool resources for a large project, such as constructing a building or publishing a series of books, where the risk and profit are shared among members.
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Legality is a key differentiator between these two. Cartels are often illegal or subject to strict regulations, particularly in the context of antitrust laws, due to their potential to manipulate markets. Syndicates, in contrast, are usually legal entities formed for legitimate collaboration, such as syndicated loans in banking or syndicated columns in journalism.
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Membership dynamics differ significantly. In a cartel, members are usually competitors in the same industry who must maintain a delicate balance between cooperation and competition. In a syndicate, members may come from diverse backgrounds and industries, united for a common project or goal.
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Finally, the temporal aspect varies. Cartels are often formed with a long-term perspective, seeking ongoing control over a market. Syndicates, conversely, are typically project-specific, dissolving once the project is completed or the common goal is achieved.
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Nov 17, 2023
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Comparison Chart
Purpose
Control prices, production, market shares.
Collaborate on specific projects or interests.
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Membership
Competitors in the same industry.
Diverse members, possibly from various fields.
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Common Industries
Oil, pharmaceuticals, etc.
Finance, real estate, media, etc.
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Cartel and Syndicate Definitions
Cartel
A consortium of independent organizations formed to limit competition.
The oil cartel agreed to cut production to raise prices.
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Syndicate
A coalition formed for pooling resources and sharing risks.
They formed a syndicate to share the risks of the new venture.
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Nov 17, 2023
Cartel
An association for the purpose of maintaining prices at a high level.
The sugar cartel maintained high prices despite global surplus.
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Nov 17, 2023
Syndicate
An association of companies for a specific project.
The construction project was funded by a banking syndicate.
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Nov 17, 2023
Cartel
A coalition of businesses controlling market prices and production.
The cartel's price-fixing activities were investigated by regulators.
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Nov 17, 2023
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Syndicate
An association of people or firms formed to promote a common interest or carry out a business enterprise.
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Oct 19, 2023
Cartel
An alliance of firms colluding to dominate a market.
They formed a cartel to control the entire supply chain.
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Nov 17, 2023
Syndicate
A loose affiliation of gangsters in control of organized criminal activities.
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Oct 19, 2023
Cartel
A combination of independent business organizations formed to regulate production, pricing, and marketing of goods by the members.
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Oct 19, 2023
Syndicate
An agency that sells articles, features, or photographs for publication in a number of newspapers or periodicals simultaneously.
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Oct 19, 2023
Cartel
An official agreement between governments at war, especially one concerning the exchange of prisoners.
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Oct 19, 2023
Syndicate
A company consisting of a number of separate newspapers; a newspaper chain.
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Oct 19, 2023
Cartel
A group of parties, factions, or nations united in a common cause; a bloc.
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Syndicate
The office, position, or jurisdiction of a syndic or body of syndics.
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Cartel
(economics) A group of businesses or nations that collude to limit competition within an industry or market.
Drug cartel
Car cartel
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Cartel
A combination of political groups (notably parties) for common action.
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Oct 19, 2023
Syndicate
To sell (a comic strip or column, for example) through a syndicate for simultaneous publication in newspapers or periodicals.
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Syndicate
To sell (a television series, for example) directly to independent stations.
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Cartel
A ship used to negotiate with an enemy in time of war, and to exchange prisoners.
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Syndicate
To create a feed for (a website), allowing users to include content from the website in other websites or to view the content.
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Syndicate
To include (the contents of a website) on another website by using a feed.
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Cartel
A letter of defiance or challenge; a challenge to single combat.
He is cowed at the very idea of a cartel.,
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Syndicate
A group of individuals or companies formed to transact some specific business, or to promote a common interest; a self-coordinating group.
A gambling syndicate
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Cartel
A consortium of independent organizations formed to limit competition by controlling the production and distribution of a product or service;
They set up the trust in the hope of gaining a monopoly
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Cartel
A group of producers regulating supply to manipulate market conditions.
The cartel reduced supply to create an artificial scarcity.
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Syndicate
(mass media) A group of media companies, or an agency, formed to acquire content such as articles, cartoons, etc., and to publish it in multiple outlets; a chain of newspapers or other media outlets managed by such an organization.
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Syndicate
The office or jurisdiction of a syndic; a body or council of syndics.
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Syndicate
(transitive) To put under the control of a group acting as a unit.
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Syndicate
To release media content through a syndicate to be broadcast or published through multiple outlets.
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Syndicate
The office or jurisdiction of a syndic; a council, or body of syndics.
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Syndicate
An association of persons officially authorized to undertake some duty or to negotiate some business; also, an association of persons who combine to carry out, on their own account, a financial or industrial project; as, a syndicate of bankers formed to take up and dispose of an entire issue of government bonds.
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Oct 19, 2023
Syndicate
A more or less organized association of criminals controlling some aspects of criminal activity, in a specific area or country-wide; - used loosely as a synonym for organized crime or the mafia.
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Oct 19, 2023
Syndicate
A commercial organization that purchases various journalistic items, such as articles, columns, or comic strips, from their individual creators, and resells them to newspapers or other periodicals for simultaneous publication over a wide area.
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Oct 19, 2023
Syndicate
To acquire or control for or by, or to subject to the management of, a syndicate; as, syndicated newspapers.
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Oct 19, 2023
Syndicate
To purchase various journalistic items, such as articles, columns, or comic strips, from their individual creators, and resell them to numerous periodicals for simultaneous publication over a wide area; a syndicated columnist.
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Oct 19, 2023
Syndicate
A loose affiliation of gangsters in charge of organized criminal activities
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Oct 19, 2023
Syndicate
A news agency that sells features or articles or photographs etc. to newspapers for simultaneous publication
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Syndicate
Sell articles, television programs, or photos to several publications or independent broadcasting stations
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Syndicate
A group organized to undertake a joint venture.
The syndicate invested in a major real estate development.
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Nov 17, 2023
Syndicate
An alliance of people or firms for a common business purpose.
A syndicate of writers collaborated on the new TV series.
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Syndicate
A group combining efforts for mutual advantage.
A syndicate of small farmers banded together to access larger markets.
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Repeatedly Asked Queries
Are cartels legal?
Cartels are often illegal or heavily regulated due to their market-manipulating nature.
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Nov 17, 2023
Is a cartel always about price-fixing?
Mostly, but they can also focus on production limits and market division.
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Nov 17, 2023
Are syndicates project-specific?
Yes, they are usually formed for specific projects or goals.
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Can a syndicate involve individuals?
Yes, individuals can be part of a syndicate.
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What is a cartel?
A cartel is an agreement among competitors to control prices and production.
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Nov 17, 2023
Do syndicates share profits and risks?
Yes, syndicates share both profits and risks among members.
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How long do cartels typically last?
Cartels often aim for long-term market control.
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What's the main goal of a cartel?
To maximize profits by reducing competition.
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Nov 17, 2023
What is a syndicate?
A syndicate is a group formed to carry out a specific business project or interest.
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Nov 17, 2023
Can a syndicate be formed across different industries?
Yes, syndicates can include members from various industries.
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What are examples of syndicates?
Examples include banking syndicates for loans or media syndicates for content distribution.
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Are syndicates always business-oriented?
Mostly, though they can have other common interests.
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What's the difference in membership between cartels and syndicates?
Cartel members are competitors in the same industry, while syndicate members can be more diverse.
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Nov 17, 2023
How are syndicates formed?
Through agreements among parties to pool resources for a common goal.
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Do cartels have legal alternatives?
Joint ventures and strategic alliances can be legal alternatives to cartels.
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Can a cartel control an entire industry?
Potentially, if it's powerful enough.
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Nov 17, 2023
What happens to a cartel if caught?
They can face legal penalties, fines, or dissolution.
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Can a syndicate turn into a long-term partnership?
It's possible, but they are generally formed for specific purposes.
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Nov 17, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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