Competitor now has three sites selling their products targeting the same keywords. Is this allowed? earn by blogging adsense income

Edit:This is regarding Google.

Our competitor has 3 listings on the main page for their online shop. They all sell the same product, they all target the same keywords, but the layout and the name is different. The server IP's are different but are on the same platform.

This has pushed other's off of first page including our site. Is this allowed? Should we do the same?

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