I'm assuming the Mr. Breeder you're talking about is a commercial breeder, and Mr. Competitor dosen't breed his own.

Many doggers don't have the yard space to take on breeding projects. They might have room for 10 dogs at best. They need a reliable source to get replacements. Thats probably why many competitors don't breed.

Commercial breeders might not compete because of the risk envolved with thew law.