In the last decade, combating migrant smuggling has emerged as a top priority for the European Union (EU). The analysis in this paper accounts for the dual structure of the market for smuggling services, including a criminal cartel segment and a segment of small self-employed smuggler. The large trading frictions specific to this criminal activity justify the use of a directed search model of fee determination. Comparative statics for the equilibrium solution and numerical simulations show that while general-purpose policy measures demonstrate efficiency in curbing irregular migration, they might inadvertently bolster cartel profits as they push self-employed smugglers out of the market.