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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.]
When competitors collude, prices are inflated and the customer is cheated. Price fixing, bid rigging, and other forms of collusion are illegal and are subject to criminal prosecution by the Antitrust Division of the United States Department of Justice.