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Thats fucked up but that is an old trick - "if you want my product you have to use it exclusively". He knows you are solid competition and so is trying to beat you with the shelf space game before you get big enough to fight back.
Real way to beat him, IMVHO, is establish personal relationships with as many sites as you can, don't whine, but admit the challenge, as you have done here. In the long run people get tired of that shit and want a good player.
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