I get why people are annoyed with Merlin. But at the same time, isn't this what businesses do? If a supermarket has a monopoly on an area, and another supermarket comes and tries to set a branch up, wouldn't the original supermarket do whatever it could to stop that supermarket marching in on its territory?
You could argue as well that Merlin's reasoning is pretty fair, given they seem to arguing against an issue with how the application was submitted, as opposed to the application itself (as I understand it). Can see why they'd be miffed if they want a level playing field in that respect, even if it is a low move from them.
In some twisted way, this kind of is a positive thing, no? It shows that Merlin see the London Resort as a more credible and possible thing now. If they didn't think this would happen, then surely they wouldn't waste their time with this. I still am in the 'I'll believe it when I see it' camp, but yeah, it's a positive thing in some way.
Also, it's not exactly like Merlin are trying to steamroll a tiny family business and make them bankrupt, they're going against another huge company with a ton of money too.
Ultimately, it's a bit of a low blow move, but it's business.