Public prosecutors from 20 states, the District of Columbia and the US Department of Justice, sued Microsoft Corp. for allegedly violating antitrust regulations. The Justice Department asserts that Microsoft is unfair in forcing consumers to use software products, especially the Internet Explorer web browser through the Windows operating system, which has prevented healthy competition from emerging. The United States government has accused Microsoft of monopolistic practices.

The cases mentioned above are not the focus of our attention in this article. Our focus is whether the practice of monopoly or cartel is also a prohibited business model from the Islamic perspective.

Islamic perspective
There are many in Islamic literature related to monopolies, and almost everyone agrees that monopolistic practices are strictly prohibited. The same applies to all forms of monopolistic competition (price, goods, etc.).

All those interviewed stated that monopoly in all types of community needs is prohibited. Reasons for such restrictions, the monopoly will have enormous power to raise prices and control the supply of goods at will and, in the end, will torment the people.

Test in the Quran
Monopoly (ihtikar) comes from the word hakr, which means to collect and control goods. Ihtikar used by scholars of Islamic jurisprudence to assert the privilege of collecting and controlling goods in an effort to anticipate the need for price increases. In other words, it means the process of monopolizing ihtikar products to generate price increases.

The Qur’an does not mention ihtikar. The Quran only shows about the hoarding of gold and silver. However, in the hadith it is mentioned to Prophet Muhammad that many muhtakir (monopolists) are sinners.

Monopoly and spirit of Islam
In an article, a consultant for the Islamic magazine Sharia Banker said that the spirit of Islam opposes monopolistic practices and the terms of any condition.

Dr. Zaki Badawi also argued that the same applies to the banking system and the efforts of others. Monopoly in the banking system as an example, the monopolist will provide financial strength and business practices in the community. The spirit of Islam to realize that monopoly will give the right of undue authority to a few groups will also affect inefficiency.

However, there are sometimes events / circumstances where some Muslim groups engage in monopolistic practices. For example, the Islamic banking system in some Muslim countries has operated a national monopoly with state protection.

Such cases occur in Malaysia Islamic Bank Bhd, led by the state monopoly when it was founded in 1983, until then the Malaysian government introduced two-system banks in 1993, allowing conventional banks to open banking services without due bank interest. Islamic.

Although there are many opposing opinions, especially those related to monopolistic practices recently, most experts argued that monopolistic practices in all its forms in the field of trade, financial policy and contrary to Islamic principles.

Going through thin line
The question that arises is, can Muslim men participate in the activities of the company or invest in businesses involved in monopolistic practices that are not contrary to the law and illegal activity?

According to the definition of significant monopoly on supply pools and a player to exploit consumers and workers, many experts tend to state monopoly as opposing the practice of law in Islam.

However, experts have argued subjectively. According to a hadith, ihtikar only items related to household needs and motivation to store items that can trigger or anticipate rising prices of goods on the market.

The current monopoly, as a practice generally carried out by some companies, not only controls supply to affect prices, but also to maintain business, government desire and market penetration (by making significant price drops). Currently, the most harmful monopolistic rival firms in the same industry as adverse consumers.

Returning to the Microsoft case, several Islamic fund institutions have been delisted from Microsoft’s sharia stock list. However, monopolistic practices are more acceptable than those based on the practices of interest.