What is the meaning of Explicit Collusion?

Explicit collusion refers to a direct and formal agreement between competing parties, such as businesses, to coordinate their actions, typically to manipulate market conditions. This might involve setting prices, controlling output, or dividing markets to avoid competition and maximize profits. Such practices are often illegal in many jurisdictions, as they undermine fair competition and harm consumers. Unlike tacit collusion, which occurs without formal communication, explicit collusion involves clear communication and a mutual understanding of the colluding parties' intentions.