Quota cartel

A quota cartel is a sub-form of a Cartel to understand which is geared towards the agreement of market participants in the same sector about sales or production quantities.

The companies that are bound in relation to this agreement, but otherwise continue to act legally and economically independently, have agreed on a quota (specific quantity) of the goods they produce or offer on the market according to a specific quota key.

The aim of the quota cartel is to influence the market price by controlling the goods offered on the market and to avoid competition. Competition could result in a drop in prices due to oversupply effects = decline in sales.

Example of a quota cartel - The quota agreements of the oil producing countries organized in OPEC. In Germany (Section 1 of the Act against Restraints of Competition, GWB) and in the rest of the EU, quota cartels are regarded as interfering with the market system and as unlawful.

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