'competition-friendly' is a modern compound of 'competition' + 'friendly'. 'competition' originates from Latin 'competitio' / 'competere' via Old French 'competition', where 'com-' meant 'together' and 'petere' meant 'to seek (strive for)'. 'friendly' comes from Old English 'freondlic', built from 'friend' + the adjectival suffix '-ly'.

'competition' entered English through Old French and Middle English from Latin 'competitio'/'competere'; 'friendly' developed from Old English 'freondlic' to Middle English 'friend-ly'; the hyphenated compound 'competition-friendly' is a relatively recent English formation combining these elements to describe something favorable to competition.

Individually, 'competition' originally denoted rivalry or seeking together; 'friendly' originally meant 'like a friend' or 'characteristic of a friend'. Combined in modern usage they came to mean 'having qualities that promote or favor competition' rather than personal friendliness.