A Collusion Agreement is a secret arrangement between two or more parties to cooperate in a way that undermines competition. This often occurs in business contexts, where companies may agree to fix prices, limit production, or divide markets to gain an unfair advantage. Such agreements are illegal in many jurisdictions because they harm consumers and distort fair market practices. These agreements can involve various entities, including corporations, suppliers, or even government officials. When discovered, collusion can lead to severe penalties, including fines and legal action. Regulatory bodies, like the Federal Trade Commission in the United States, actively monitor and investigate potential collusion to maintain market integrity.