Short answer-- NO!
This is not only eBay forbidden but is actually illegal.
The term is shilling.
Long answer.
Is the other bidder winning the bids?
Then he is not shilling.
He wants the same items you do and has deeper pockets.
Some sellers have faithful customers.
I have a couple myself, who buy almost exclusively from me on one particular type of product.
However, if the other bidder is pushing your bids up and then retracting his bids, leaving you as the winner, he is likely a shiller.
You can Report the seller and buyer to eBay.
To protect yourself in future.
Bid once and bid your maximum.
Nibble bidding is expensive.
Bid close to the end of the auction, so the shiller can't react.
Or like 85% of transactions on eBay, use the Fixed Price listings.
You will know what you are going to pay.
You can buy immediately.
And you have no concerns about scamming.