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They'll almost certainly try to (and some people who are currently involved may see some success). But they won't have their de facto monopoly anymore. And these organizations are rife with internal corruption (shocking, I know); they aren't being run efficiently.
Without their monopoly profits, they aren't going to be able to afford the hit squads, the bribed law enforcement, or the silence of the people who know where the bodies are buried (often literally).
Crime won't magically fall to zero overnight, but these organizations will not be having a good time.
But you're still giving them concessions while the population pays it just because you haven't been able to deal with them properly
You never will. People want drugs. Someone will always provide them. Might as well have some regulations.
Ending the black market the cartel thrives in is the proper way to deal with them. Waging an endless 'war' on a vague concept that makes the most vicious cartel leaders fabulously wealthy is clearly not.
Now is there a particular reason that you're playing devil's strawman all over this thread?
Yes, because drugs ruin entire countries