Predatory Pricing Practices on E-Commerce From an Islamic Perspective

Abstract

Numerous e-commerce platforms for buying and selling have emerged due to the advancement of information technology. This has several benefits for firms in terms of product promotion. Despite the convenience of online shopping, there might be risks for small businesses. This is because international e-commerce trade has allowed imported items to dominate the Indonesian market at significantly lower selling prices than local goods. This type of study is desk research. The aim of desk research is to collect information about the subject at hand from books, articles, papers, journals, and other sources. To gather data for this study, various publications were reviewed, including books, articles, papers, research reports, periodicals, newspapers, and laws and regulations pertinent to the subjects under discussion. Data was also retrieved via literature reviews. This study utilized primary and secondary data sources for its material. Monopoly pricing is typically established to counteract losses, which might harm consumers. This strategy aims to maximize income while offsetting losses from sales at a loss or cheap pricing. Although some nations do not forbid it, predatory pricing is generally seen as an unethical trading practice, according to the research above. Regarding the perspective of maqashid sharia, Islamic economics acknowledges the concept of predatory pricing as إغراق. Ighraq is prohibited in Islam since it is a dishonest trading activity that causes injury and has the potential to undermine monopolies and the market process. Islam prohibits the practice of monopoly.