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[In a certain town, a Jew had a store, which was licensed by the government and for which he paid a tax, while another Jew had a competing store without a license or paying a tax (for some reason, the authorities did not stop him). The licensed store wanted to prevent the unlicensed store from operating, including possibly by complaining to the authorities about him.]
In general, even if one does not pay taxes, he has a right to compete with another proprietor if he lives in the city where the business is (see Shulchan Aruch, Choshen Mishpat 156:5). However, it is arguably different regarding a tax that is specifically on the right to open a store, and perhaps the idea of pasact l’chiyuta (you ruined my livelihood) applies.
Still, it seems that the complaint is valid only in a case where the authorities have decided how many stores of one type there will be and the unauthorized proprietor causes that number to be exceeded. Otherwise, if he is allowed to open a store, just that he should have to pay a tax, what impact does it have on the paying proprietor if the government has similarly made his competitor pay or not? Even if one would say that the competitor would not have opened if he had to pay a tax, we still can counter that someone else would have opened a competing store. In truth, it is not clear that the whole claim of pasact l’chiyuta is accepted regarding someone from the same city. It is ostensibly a matter of gerama (indirect damage), and if it cannot be proved that the competitor is damaging in a way that someone else would not have, he cannot be stopped. One cannot claim that the fact that he unfairly has a store prevents a third person from opening a store because there is no specific person who can make that complaint.
One circumstance in which the licensed storeowner can complain is if the unlicensed storeowner is charging cheaper prices. [Although usually one can charge lower prices,] it does not make sense to allow someone to do so when it is likely he can do so because he does not have the expense of paying a tax.
If the above is not the case, then to complain to the authorities about him is a case of mesira (causing the non-Jewish authorities to punish a fellow Jew), as follows from the Yerushalmi in the 1st perek of Peah.
According to the conclusion of the sugya in Bava Batra we do not accept the opinion of pasact l’chiyuta and the fact that we do not allow competition from outside the city is because of chezkat hayishuv (the rights of town dwellers). This does not apply here because they are both from the town. Within the town, each one can say, "I am working within my own domain." Only in a case like that which the Aviasaf discusses, where one puts his store at the entrance of a dead-end street when the competition is inside is it forbidden because it is considered directly damaging the other.
[There is further technical analysis of the sugya, but we will summarize that unless the unauthorized proprietor takes advantage of his situation to undercut the prices, he cannot be removed or reported to the authorities in order to cause him damage.]
P'ninat Mishpat (829)
Various Rabbis
299 - Switching the Sofer in the Midst
300 - Competition Between the Licensed and the Not Licensed
301 - Intellectual Property Rights Revisited
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P'ninat Mishpat P'ninat Mishpat: Did Any Furniture Go to the Buyer? – part I
based on ruling 84093 of the Eretz Hemdah-Gazit Rabbinical Courts
P'ninat Mishpat P'ninat Mishpat: Smoking Rights in a Rental? – part III
based on ruling 85076 of the Eretz Hemdah-Gazit Rabbinical Courts
Rabbis in Midrash
Lessons
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Kuzari -Rabbi Ari Shvat Kuzari class 9 - "Seeing is Believing" (parag. 21-30)
These paragraphs elaborate on the theme that seeing and knowing is better than any attempt to prove logically, and begins explaining the difference between Israel and gentiles.
Ein Aya Various Universal Stages of the Geula Process
Rav Kook examines the various stages of redemption, explaining how (in addition to the obvious oft-mentioned stages of ingathering the exiles, reviving the Hebrew language, army, state etc.) the messianic dream of world prosperity, the State of Israel and world unity can and are realistically and logically gradually coming true.
Kuzari -Rabbi Ari Shvat Kuzari class 8- "Answering Questions on the Kuzari's Proof from Mass Revelation
How do we know that the "claim" of mass revelation to 2,000,000 witnesses at Mt. Sinai is really true? This important class answers all of the questions skeptics ask about this claim of the Kuzari.
Ein Aya Armies Still Necessary for Balance & the War Against Wars
Rav Kook explains why the world was originally divided into the various seemingly contradicting ideologies and cultures, in order to develop each one respectively. Swords or armies symbolize how each respective ideology defends themselves, as well as deters their opposing ideologies and cultures. On the other hand, the messianic era will be one of peace, and Rav Kook explains the transition to that stage, which mankind is already undergoing.
The Land of Israel LGBT'S IN ISRAEL
The question was asked, how can one make Aliyah with the LGBT parades?
Kuzari -Rabbi Ari Shvat Kuzari class 7 - Five Accumulative Proofs of G-d
As a preparation for the Kuzari's classic proof of G-d from the mass-revelation at Sinai, we start here with 5 other directions to strengthen our belief which also contribute to what the Kuzari will present as well.
Ein Aya Muscle & Meaning: The Dual Nature of Gevurah (Physical Strength)
Is physical strength and fitness a necessity or an ideal? Although it if often totally overlooked among topics of Judaism, Rav Kook writes that it clearly is also a necessity to deter the many enemies of Israel, but even in Y'mot HaMashiach, in the Messianic era, to a certain extent, it's ideal continues even after our enemies will have been finished off.
