Competition has both the black and white sides. Some of the disadvantages of competition include hidden costs and security risks.

Hidden cost refers to the cost that not included in the purchase price of a product. A competitor in the market may decide to hide some cost so that he or she makes here products or services cheaper than the other competitors in the market. Examples of the hidden cost may include repairs and maintenance costs. These hidden costs result in an increase in operational risk to the buyer of the product or service since the operating risk will increase.

Competition poses a security risk to both the seller and the buyers. This is because a seller may sell substandard goods, which are cheaper to attract the customer. The buyer of the substandard good may have health complications, which may lead to loss of life. Seller may decide to fight on each other, which may result in some seller sponsoring criminal activities against their competitors.