Encroachment in Selling an Identical Product

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Question

Question in Choshen Mishpat: I have been selling refills for electronic cigarettes from a very popular company at the yeshiva for a long time. Also, in the city where the yeshiva is located, there is no other way to obtain refills from this company. Is it permissible for another person to start supplying the exact same type at the yeshiva, or is this considered encroaching on someone else's business or infringing on boundaries? Thank you very much.

Answer

Answer of the Dayanim of the Beit Hora'ah: 

If this will cause the business to close, it is forbidden, but if it will only reduce profits, it is permitted. 

Source

This is derived from Shulchan Aruch, Choshen Mishpat, Siman 156

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