The competition is mostly from the "make money by" part. That's money from what used to be a sole company's asset now going to 2 places rather than 1. E.g. before I could leverage the rarity aspect of the gameplay & IP however I desired (including keeping it as part of making a time investment into the product if I thought that was more valuable in the long run) but now you're selling an alternative version of the experience to people and I have to compete with getting any pokemon and stats instantly from someone else for $x when it comes to extracting the value from the IP asset with the protected saves.

I'm not saying this is a great stance, just showing how it is seen as competition in the second scenario alone.