Q: There is also a well-known hadith where people asked the Prophet ﷺ to fix prices because prices had risen. He declined, saying that Allah is the One who determines prices and that he did not want to meet Allah having wronged anyone regarding their wealth. This is often cited by scholars as evidence that prices should generally be left to the market rather than artificially controlled.
As for competitors agreeing on prices:
* Many contemporary Islamic scholars say that competitors should not collude to fix prices, especially if it harms customers or prevents fair competition.
* If businesses agree to keep prices at a certain level to eliminate competition or manipulate the market, this can conflict with the Islamic principles of justice and fair dealing.
A: The hadeeth is clear that prices should not be determined and fixed. Hence, these matters should be left to individuals. These practices of fixing a price or colluding create a problem in the market. The individual should be left to himself to determine a price whether less or more for the customer as he pleases.
And Allah Ta'ala (الله تعالى) knows best.
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