Unfair Competition in Selling the Same Product

Question

A question in Choshen Mishpat:I run a small business selling popular e-cigarette refills in the yeshiva. I’ve been doing this for quite some time, and in the town where the yeshiva is located, there’s no other place to buy refills of this specific brand.Is another student allowed to start selling the exact same product in the same yeshiva, or would that be considered yored le’umanuto shel chaveiro or hasagas gevul ?Thank you.

Answer

Response from the Dayanim of the Beis Hora’ah:

 If opening a second business would cause you to shut down, it’s not allowed.
 But if it would just lower your profits, then it’s permitted. 

Source

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

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