It is, but this isn't competition. This just copyright infringement.

Competition would be if these people created their own software, possibly innovating and improving it in the process. That would encourage Papermark to improve their own offering, and would create an environment where these businesses are economically incentivized to improve the product or service.

Nobody is incentivized to improve the software in question here. If copyright law doesn't protect anything, then improving your product is helping the competition and potentially hurting your business. Same is true if you're the people who did the infringement.

When it plays fair, sure. Not when it steals.

Stealing is the opposite of competition. It's in the same category as straight killing your competitors.

Let’s not even talk about the feature. Copying the entire visual design itself with superficial tweaks is pretty brazen and, frankly, incredibly lazy.

When competition has no rules it resorts to people banging each other over their heads with clubs.