I really don't understand why Apple would decide to do this. It would seem to make more sense for Apple to tell the complainant to sue the competitor directly and get a court order to remove the app from the store.
"Decision process?" I think you're really at the mercy of some mid-level manager or some clueless flunky.
If they have a "decision process" I would love to see the documentation they have on it, and the notes from this one!