Is it permissible for two companies to agree on specific prices when bidding for a government tender, with the aim of raising the price and sharing the profit?
If other companies submit bids for the tender besides the two agreed-upon companies, there is no harm in their agreement on a single price and abandoning the bidding. However, if no other companies submit bids, it is not permissible for them to agree to abandon the bidding to raise the price on the announcing entity, due to the deception, fraud, and undervaluation involved, as Allah Almighty says: "And do not deprive people of their due and do not commit abuse on the earth, spreading corruption." Ibn Taymiyyah mentioned the permissibility of two parties agreeing not to bid if the door to bidding is open to others, and its impermissibility if the market participants agree not to bid to undervalue the seller's merchandise.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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