Re: Destroy competition
The theory is that if you criminalise paying a ransom then you start to discourage the crime by removing the profit motive. Sure, companies that haven't invested in security will be thrown against the wall, but that will encourage others to properly pay and respect their IT staff.
It makes more sense than the current British government policy which is, "We don't negotiate with criminals! We're just leaving this bag of money over there and walking away."