<pre>Law on Market Price Fixing in the Pure Competition Market


Jumhur ulama argued that the original law tas'îr (price fixing) was haram both in crisis and normal situations. Imposing the maximum price limit of sales to a trader is basically wrong behavior. This opinion certainly has a strong foundation because there is a guarantee from Allah ﷻ will halal buying and selling and forbid usury. This verse indirectly constitutes legitimacy for the legitimacy of taking advantage of whatever size a trader wants.

However, the point of the problem was that the Messenger of Allah melarang also prohibited the sale and purchase of below the market price or higher than the market price with the intention of damaging the market of neighboring products that were both traders. In a hadith narrated by Thawus of Ibn Abbas radliyallaahu 'anhu the Messenger of Allah ﷺ said:

لا يكون له سمسارا متفق عليه واللفظ للبخارى

Meaning: “Do not pick up (intercept) the merchants who carry their merchandise before the market price is known, and do not let the city people sell things to the villagers. I asked Ibn Abas: what was meant by the words of the apostle that city people could not sell their wares with the villagers? answered Ibn Abas: that is, do not let the city people become brokers of villagers “(Hadith agreed upon by Imam Bukhari and Muslim).


This hadith tells about the prohibition of buying and selling talaqqy rukban and bai 'hadlir li baad – as in writing, buying and selling are prohibited by Islamic law. The essence of this prohibition is basically not because it intercepts the buyer / contractor against the trader from the village or from outside the area. The aspect of prohibition contained in the hadith is due to the price factor conveyed by the contractor interceptors against traders who do not know the actual market price. This is reflected in a number of fiqh solutions which stated that the practice of the two models of sale and purchase was still considered valid when the interceptor gave the traders time to be intercepted until he entered the market and knew the actual market price then returned to the interceptor (the contractor ) to decide whether or not the transaction has been carried out. As a result, the first basic knowledge that must be understood by buyers and sellers is 'market price.'

Emphasizing market understanding, there are 4 market characteristics. First, there is a market with characteristics of pure competition, we call the pure market (19459002) pure market ). Second, there is a market with characteristics of pure monopoly, we call a monopoly market. Third, there is a market where rival monopolists meet with each other, then we call the monopoly competition market. And fourth, there is an oligopoly market which is a combination of monopoly markets and monopolistic competition. As the title of this article, we limit this study to the pure market.

The characteristics of a pure market are characterized by several things, namely:

1. There are many producers and consumers at the transaction location. The existence of producers' treatment of their products does not give much influence to market prices. For example, a producer minimizes its production capacity so that the goods marketed will change to a little. According to economic law, the price of the product must increase. But along with many similar substitute products on the market, the price of the product cannot be high. Instead, he will close out if he insists on reducing his production capacity.

2. Almost all products sold by companies in the pure market are homogeneous (uniform). Although different brands, because the nature of the goods sold are homogeneous, it is almost certainly difficult to distinguish between the advantages of one item with another brand of goods, especially with similar specifications. As an easy illustration in this case is the stock market. Call for example, the computer stock market that sells various types of computers of various brands and types. Consumers take advantage of the existence of a market like this usually to find products with low prices.

3. There is no competition in this pure market other than price competition. All forms of quality, advertising, promotion, have absolutely no effect on the market. There is only a price war. Who controls the price, he will gain market share. Conversely, the losing producer will be willing to get out of the pure competition path.

Characteristic of pure market competition is influenced by the relation between the quantity of goods and demand. Price equilibrium occurs when the supply of goods is balanced with the conditions of supply. Pricing can cause a crisis and is detrimental to one of the parties that has the potential to make a transaction. If forced to set a price at a certain price, items that cannot last long will experience cases of decay in the storage area. Trader's strategy, usually is to try to prevent even greater losses due to unsold goods. Therefore, he dared to reduce the selling price of goods. The action taken by this merchant is her right to safeguard bankruptcy. Prevention of traders' actions in lowering prices, is seen as a crime. For this reason, the tas'ir in the marketplace was purely true that the law was haram.

Conversely, too, if the number of goods on the market is small, while consumers need a lot, the seller will take action to increase prices in line with compensation for losses that may be faced when the number of items is in many condition and few buyers. Tas'ir carried out by the government could instead cause traders [talaqqy rukban] or bai 'hadlir li al baad whose practice resembled this middleman. Further explanation about this was conveyed by Ibn Qudamah. He delivered:

التسعير سبب الغلاء, لأن الجالبين إذا بلغهم ذلك لم يقدموا بسلعهم بلدا يكرهون على بيعها فيه بغير ما يريدون, ومن عنده البضاعة يمتنع من بيعها ويكتمها, ويطلبها أهل الحاجة إليها فلا يجدونها إلا قليلا, فيرفعون في ثمنها ليصلوا إليها, فتغلو الأسعار ويحصل الإضرار بالجانبين: جانب الملاك, في منعهم من بيع أملاكهم, وجانب المشتري في منعه من الوصول إلى غرضه, فيكون حراما

means: “ Tas'îr is one of the causes of inflation in prices, because the nature of the players buying and selling jalab (1945) talaqqy rukban – broker – usually, when it comes to them (news on the market), they will not bring their merchandise to countries that they hate buying and selling in it because they are not in line with their expectations, for the owners of goods, they hold goods, stockpile them, while many consumers are looking for goods, and they do not find them on the market except in minimal numbers. to get it. Finally, there was a price increase, which resulted in the detriment of the two parties who were in the transaction, namely: on the one hand, the owner of the property was harmed as a consequence of the detention of his property, and on the other hand the buyer, as a consequence of his detention from getting the goods needed. So from that, tas'îr the law is haram. “(Ibn Qudâmah al-Maqdisy, Al Mughny Syarah Matn al-Kharâqy Cairo: Thab'ah Maktabah al-Qâhirah, 1970 : 4/240)

A black trader – broker – (who is outside the market) usually has guidelines on market prices. The offer for stock traders in the middle of the road, is the effect of the market price information received. The difference between the market price and the bargain price is the basis for getting more profits from stock traders. If the market price fixing has been carried out by the government, then in the pure competitive market position, the perpetrators talaqqy rukban and sell and buy jalab will form into another form. He will move directly to the producer of the original goods (for example the farmer), who then hoard, then sell the goods to the area where the price is desired. As a result, goods in the pure competition market are reduced, resulting in price inflation.

This understanding of the situation can easily be imagined in the situation of trading the vegetable market or the market for agricultural products or the electronic market. The results of agricultural products, or electronic products are actually many, but due to the actions of traders, the goods on the market have decreased, eventually the scarcity of goods has emerged, even though the goods are also needed by the surrounding community. The final effect is that the price of goods will increase as a consequence of the difficulty of obtaining goods by consumers. Considering this reason, bai 'talaqqy rukban bai' hadlir li al-baaad broker and tas'îr in the pure competitive market situation, the law was haram. What about tas'ir in the other three market patterns? Check out the next review! Allah knows best .

Muhammad Syamsudin Activist of Applied Fiqh Studies and Caregiver PP Hasan Jufri Putri, P. Bawean, East Java

. ] Islamic Organizations

This Article was Published On: NU Online


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