From their website:
Competition/sparring, to the unknowledgeable, often appear to offer a measure of quality. This why many business-oriented studios emphasize it – It helps sales and makes students feel like they are learning and doing well. While sparring can be a useful training tool for higher ranked students under the right circumstances, emphasis on it, and particularly using sparring competition as a goal of training, has many negative effects which severely limit training quality. Part of what karate training does is teach the body a way to react that is not built-in, or innate. Sparring competition, instead of cultivating a highly effective, non-innate way to react in a self-defense situation, accentuates less effective, mostly innate skills and develops downright dangerous habits for self-defense. These include training only to react when ready, concentrating on only a single opponent, and relying only on punching and kicking or only on grappling depending on the martial arts style. Further, holding competition as the goal often results in teachers, students and the style itself not looking out for, or even harming, the long-term health of the students.