A monopoly is an act that prohibits in Islam, so what is the law of the prohibitions of monopoly in Islam? Below here are the 15 Prohibition of monopoly in Islam you should know.
Monopoly activity is something that Allah Almighty forbids, monopoly activities intend to seize the property of the population including the poor.
The following below is a warning from Allah in the Quran for anyone who plays in a monopoly. For more information, you can see more on the prohibition of monopoly in Islam.
“And what Allah restored to His Messenger from the people of the towns – it is for Allah and for the Messenger and for [his] near relatives and orphans and the [stranded] traveler – so that it will not be a perpetual distribution among the rich from among you.
And whatever the Messenger has given you – take; and what he has forbidden you – refrain from. And fear Allah; indeed, Allah is severe in penalty.” Verse (59:7)
2. The legal basis for prohibiting monopoly in Islam
Islam teaches us to do business in the right way, and this has been taught as the Prophet Muhammad (PBUH) gave us an example. The monopoly of this activity is strictly forbidden in Islam, below here Allah says in the Quran.
“O you who have believed, do not consume one another’s wealth unjustly but only [in lawful] business by mutual consent. And do not kill yourselves [or one another]. Indeed, Allah is to you ever Merciful.”
Verse (4:29)
3. Stockpiling of goods
Stockpiling of goods is one part of the way of monopoly, by means of; for example, a trader stockpiling the rice that circulating in the community.
Then, when rice is in crisis, he is sold at a high price. This is what makes people finally harmed. Following below, the Prophet Muhammad said in his hadith. For more information, you can see on the importance of business in Islam.
“Whoever stockpiling goods, then he sinned, “(Muslim).
4. It will damage the market prices
Monopoly activities can indeed damage market prices, which at first low prices become high and otherwise which should be sold at high prices instead sold at low prices. Damaging market prices is also an act that is prohibited by Islam, as the following hadith below states that.
“Whoever does ihtikar to damage market prices so that prices rise sharply, then it is sinful.”
(Ibn Majah and Ahmad) [AdSense-B]
5. It can negatively affect the goods available
Stockpiling goods can also negatively affect existing goods. In a hadith, it is explained that the goods which are piled up or the food is piled up for 40 days, Allah will abandon his responsibility and go away. Check here also on the punishment for insulting the Prophet Muhammad SAW. Well, below here is the hadith.
“Whoever hoarded food for 40 days, then he will be separated from the responsibility of Allah and Allah will wash his hands from his actions.” (Ahmad)
6. The monopolist
Who are the monopolists? Monopolists are usually people who have power and he likes to hoard these items. In addition, if he hears the price of an item is cheap he will feel disappointed, but if it is instead, he will feel happy. The following below here is the hadith.
“As bad as humans are people who like to hoard if you hear cheap prices feel disappointed and if you hear prices go up, he feels happy.”( Ibn Razih)
[AdSense-A]
7. Human life assets
There are three things about human life assets that must be maintained, their sustainability and management by the state.
They are grass, water, and fire. For example electricity or water flow, this is better managed by the state. Why? This is an asset for mutual interest if these three things have a monopoly in it. Indeed this can cause the country to lose. The following below is the hadith of the Prophet.
“Muslims are allied (have the same rights) in three things, namely grass, water, and fire.” (Abu Daud)
8. Placed in hellfire
Whoever dares to do a monopoly at market prices, in fact, Allah will put him in hellfire. Indeed, Allah will give a very painful punishment to the monopolist. The following below is the hadith.
“Who is damaging the market price, so that the price jumps sharply, so Allah Almighty will place it in & dam hellfire on the Day of Judgment.” (Ath-Thabrani from Ma’qil ibn Yasar)
9. The conditions for allowing a monopoly in Islam
The conditions for allowing a monopoly in Islam are as follows; a buyer or seller may stock up on food or goods to be transported into the house before reselling them at a reasonable price. The following below is one of the hadiths that explain this.
From Ibnu Umar r.a. he said: “I saw people who bought food without being weighed in the time of the Prophet Muhammad they were prohibited from selling it unless they had to transport it to their homes first.”(Bukhari, and Muslim)
10. Preventing things that make it difficult for humans
In another verse, it states that monopoly tricks, stockpiling and damaging market prices. In this case, Islam will take firm action and threaten those who do this with a very painful punishment in the hereafter. Next below here, Allah says in the Quran.
“O you who have believed, indeed many of the scholars and the monks devour the wealth of people unjustly and avert [them] from the way of Allah. And those who hoard gold and silver and spend it not in the way of Allah – give them tidings of a painful punishment.
The Day when it will be heated in the fire of Hell and seared therewith will be their foreheads, their flanks, and their backs, (it will be said), “This is what you hoarded for yourselves, so taste what you used to hoard.” Verse 9 (34-35)
11. Be honest in trading
Then, how do you trade that is recommended by Islam? First, do it honestly and use a measure or scale with the correct balance sheet. The goods or conditions of food ingredients are also in good condition and it is not rotten. Below here, Allah says in the Quran.
“And give full measure when you measure and weigh with an even balance. That is the best [way] and best in the result.” Verse (17:35)
12. Responsible for providing community needs.
A seller must have a responsibility as a provider of community needs. However, if he has hoarded, cheated in price and it is not done honestly, Allah Almighty will befall him with losses. The following below here is the hadith. Check here also about honestly on the ways how to become humble in Islam.
“Whoever hoards the food of the Muslims, Allah will befall him with losses or will be affected by leprosy.”
(Ahmad)
13. Full of fraud
If the mosque is the noblest place, then the market is the worst place, why? Because in the market a lot of people carry out hoarding, cheating, and counterfeiting of goods that make people suffer losses. Following below here, the Prophet said in his hadith.
“The best places are mosques, and the worst places are markets”. ( Thabrani)
14. Allah the Most Just in giving sustenance
Following in a verse of the Quran below, it is explained that as important as the importance of games and commerce are more important to perform daily prayers and do good deeds. The good that is done makes us lucky people. Surely the best sustenance has been arranged by Allah. Following below here, Allah explains in the Quran.
“And when the prayer has been concluded, disperse within the land and seek from the bounty of Allah, and remember Allah often that you may succeed. But when they saw a transaction or a diversion,
[AdSense-C]
[O Muhammad], they rushed to it and left you standing. Say, “What is with Allah is better than diversion and than a transaction, and Allah is the best of providers.” Verse (62:10-11)
15. Always be friendly and polite
Both traders and sellers must always be friendly and polite in carrying out buying and selling. Besides that, it must also be honest, full of responsibility, and do not do cheat.
Indeed, Allah will give His mercy to those who are kind. Allah will give much of rewards as the most rewarding deeds in Islam. The following below here is the hadith.
“Allah Almighty is He is The Most Merciful to someone who is generous when he sells when buying and or when demanding rights”. (Bukhari)
Hopefully the above on 15 prohibitions of Monopoly in Islam can add our knowledge more how is the right way to be a seller that selling the goods for the people. Indeed, Allah will give the great reward whosoever Muslim do in the right way.
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