When a company say ‘this yoyo is not a competition yoyo’, that can be inferred as a yoyo that is difficult to use, meant for people who already have several yoyos and is looking for something different. Something like narrow with high wall. I doubt it will be someone’s first yoyo.
I believe Onedrop released one but I forgot what it’s called.
Any yoyo can actually be used as ‘fun yoyo’ or ‘competition yoyo’ though. Calling it either one to me is just another marketing strategy. Maybe someone doesn’t know which yoyo to get, and seeing the cool phrase ‘competition yoyo’ might convince him to buy one.