The Brooklyn Pizza Wars: Hasagat Gevul and Free Enterprise

(14) You shall not move your countryman’s landmarks, set up by previous generations, in the property that will be allotted to you in the land that the LORD your God is giving you to possess.

Rav Huna said: There was a certain resident of an alleyway who set up a mill in the alleyway and earned his living grinding grain for people. And subsequently another resident of the alleyway came and set up a mill next to his. The halakha is that the first one may prevent him from doing so if he wishes, as he can say to him: You are disrupting my livelihood by taking my customers. The Gemara suggests: Let us say that a baraita supports his opinion: One must distance fish traps from fish, i.e., from other fish traps, as far as the fish travels, i.e., the distance from which the fish will travel. ...Ravina said to Rava: Shall we say that Rav Huna spoke in accordance with the opinion of Rabbi Yehuda? As we learned in a mishna (Bava Metzia 60a): Rabbi Yehuda says: A storekeeper may not hand out toasted grain and nuts to children who patronize his store, due to the fact that he thereby accustoms them to come to him at the expense of competing storekeepers. And the Rabbis permit doing so. This indicates that according to the opinion of Rabbi Yehuda, all forms of competition are prohibited, which would include the scenario concerning the mill. The Gemara rejects this suggestion: You may even say that Rav Huna holds in accordance with the opinion of the Rabbis. The Rabbis disagree with Rabbi Yehuda only there, as the storekeeper can say to his competitor: If I distribute walnuts, you can distribute almonds [shiyuskei]. But here, with regard to a resident of an alleyway who sets up a mill in that alleyway where another mill already exists, even the Rabbis concede that the owner of the first mill can say to him: You are disrupting my livelihood, as beforehand whoever required grinding came to me, and you have provided them with another option. The Gemara raises an objection from a baraita: A man may establish a shop alongside the shop of another, and a bathhouse alongside the bathhouse of another, and the other cannot protest, because the newcomer can say to him: You operate in your space, and I operate in my space. ...Rav Huna, son of Rav Yehoshua, says: It is obvious to me that a resident of one town can prevent a resident of another town from establishing a similar business in the locale of the first individual. But if he pays the tax of that first town, he cannot prevent him from doing business there, as he too is considered a resident of the town. ...

R. Moshe Isserles: There are those who say that the ability of residents to deny a business permit to residents of another place, is only possible where there will be no loss to the consumer. [That is, the proposed new business] would sell just like the original residents, and also their wares are no better than those of the original residents. However, [if the proposed new business] were to sell for lower prices, or the items were nice, then the consumers would benefit; in such a case, the original businesses may not deny a permit....Additionally, [if the new business] would bring in a new item, which wasn't previously available; even if not cheaper nor better, the original business may not deny them a permit...