Yes, I think the reason that the store owner committed the arson was because customers were going to the other liquor store. Instead of slashing prices or offering the customers reward cards, this fellow decided to try to eliminate the enemy. Not all personalities should be business owners. it just isn’t safe.
Competition can cause the worst in people to come out. These two liquor stores were clearly competing for customers and there must have been some rivalry or bad history between the two owners for something like this to happen. The market typically dictates how pricing is set so there couldn't have been serious undercutting by one party.
The liquor store owner and the arsonists should be punished for this not the consumers. While it is true that competition can become fierce it should not come to setting rival stores on fire. That is never an answer and what happened is terrible. The store owner and the arsonists should be punished.
This arson was not caused by competition. This arson was caused by people who chose to break the law. The answer to competition is competition. The other business should have developed a plan to compete, fair and square. They chose to break the law, and they should be treated accordingly. Capitalism is not to blame, but human nature is.