I am going to respectfully deviate from the answers above. While it is important to provide a caveat that works of fiction often should not be taken too seriously, the statement made by the Merovingian in The Matrix Reloaded is a coherent philosophical claim within the context of the movie and effectively serves as a key theme that is present throughout The Matrix trilogy. "Choice is an illusion, created between those with power, and those without." Choice, reality, and knowledge all play a critical role in the philosophy that underlies the movie. One is free to disagree with the Wachowskis on their philosophical stance. However, they do, in fact, make a philosophical claim by having this character make this statement and it should not be dismissed as nonsense. The idea that choice is an illusion is the ultimate representation of a philosophical lineage referred to as "determinism," which holds that everything that exists is governed by causality ("cause and effect") and that the past dictates the future without fail. Determinism would hold that you did not choose to read this message - the fact that you are reading this message was determined long ago (perhaps at the beginning of time). In such a universe, determinism states that the idea of free will ("choice") does not exist. Free will only SEEMS to exist because the processes that govern the past and the future are too complex to be understood. In this case, the Merovingian represents a computer program's answer to the question of free will. The dialogue suggests that both the "powerful" and the "powerless" both participate in this "illusion" and neither creates it. The film later suggests that those who "have power" are those who can answer the question of "why?" which refers to the ability to understand ultimate causes so that the subsequent effect can be known. I apologize for the length and I hope this makes sense. Let me know if you would like me to clarify anything.

It's a movie script. It doesn't have to make sense. It just has to give the impression of making sense to the viewer at the time. (And ideally sounding cool and deep as well) Jazz has tried to make sense of it, and come up with a plausible explanation. She was perhaps a bit liberal, but she had to, as it doesn't actually seem to stand up to close analysis.

Hello, Nikita. Another way to say it is, the powerful have created the illusion of choice for the powerless. The powerless have been deceived into believing they have options in life, but in reality, they don't. I hope this explanation helps.

It means that those with power (the powerful elite) created the illusion of choice to separate themselves from those without power (the powerless). Hope this helps.:)