Why Is Amazon Forcing Me To Get Approval From My Competitor To Sell An Item??

Long story short-ish: I have an item that I can source for much cheaper than the only other seller on Amazon. Therefor, I can list it for much less and undercut my competition while still turning solid margins. However, when I try to list this item, it tells me I need to submit a Selling Application. Well as it turns it says approval needs to go by that one other company. That makes no sense why I have to ask my DIRECT competitor for permission. Obviously they’re going to deny it, right? Any logical company or person would go to the ends of the earth to reduce competition.