Cut off your nose to spite your face
to do something because you are
angry, even if it will cause trouble for you 'The next time he treats
me like that, I'm just going to quit my job.' 'Isn't that a bit like
cutting off your nose to spite your face?'
As expressed here, it is doing something that will negatively impact you, so as to negatively impact another.
Other examples would be to miss an event you wanted to go to, just so that a companion cannot go either (in the case of an arguement and you want to be vindictive).
In your case, there could have been a profit at hand, but they missed out on that profit (which is inherently negative) in order to prevent another organisation benefiting