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intr.v. colÂ·ludÂ·ed, colÂ·ludÂ·ing, colÂ·ludes. To act together, often in secret, to achieve an illegal or improper purpose: The managers and the union leaders regularly colluded to rob the plantations at the expense of the workers (Daniel Wilkinson). [Latin collÅ«dere : com-, com- + lÅ«dere, to play; see leid- in Indo-European roots.]
What is 'Collusion'. Collusion is a non-competitive secret or sometimes illegal agreement between rivals that attempts to disrupt the market's equilibrium. Collusion involves people or companies that would typically compete, conspiring or working together that results in an unfair market advantage. The parties may collectively choose to restrict the supply of a good or agree to increase its price to maximize profits.