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What is the ruling on price coordination among competing companies in tenders to ensure benefit for all?

1 min readAlso available in العربية

The rules of Sharia dictate against causing harm. Coordination with companies regarding bid prices leads to severe harm for the contracting party, as prices will undoubtedly rise, the harm of which is not hidden. This coordination contravenes what Muslim narrated from Jabir (may Allah be pleased with him), that the Prophet (peace and blessings be upon him) said: "No city dweller should sell on behalf of a desert dweller. Leave people; Allah will provide for some of them from others." It also contravenes what Ahmad and Al-Tabarani narrated from Abu Al-Sa'ib that the Prophet (peace and blessings be upon him) said: "Leave people; let some benefit from others. If one of you seeks advice from his brother, let him advise him sincerely." Therefore, this coordination is impermissible.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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