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The phrase 'increase competition' is correct and usable in written English.
You can use it to describe situations where competition is increasing, such as when a new business enters a market or more people enter a race. For example, "The launch of their new product is set to increase competition in the cosmetics industry."
Exact(57)
A key element of the bill is to increase competition in the NHS.
That should increase competition further still.
A variety of measures have been suggested to increase competition.
"Other big players may be beneficial, just to increase competition".
Toyota is revving up new products that will increase competition.
It aims to increase competition and reduce costs.
The avowed aim is to increase competition and encourage entrepreneurship.
The waiver was meant to increase competition among wireless providers.
Similar(3)
Those measures didn't destroy the system, but they did increase competition and reduce the market share of Canadian cheesemakers.
"His arrival will only increase competition for places".
And, really, there aren't many other options to increase competition.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com