I would very strongly suggest you speak with a lawyer. What if you do the moral thing and said competitor sees you as trying to blackmail him or something even

I would very strongly suggest you speak with a lawyer. What if you do the moral thing and said competitor sees you as trying to blackmail him or something even if your intentions are good? What if he responds with a proactive lawsuit? This isn't about anything other than CYA. An hour or so from a lawyer could save you a LOT of pain down the road.