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Dueling High-Rises on East 79th

What happens when a new giant development threatens another pre-existing development? A Curbed reader emails from the Upper East Side:

There is a building going up in on East 79th Street, right off First Avenue. It was the spot of a small three-story auction house, and one of the few older walk-ups on the block. If this building goes much higher than that four or five floors it is now (what are the chances of that....) it will start to completely block the windows of the big fancy high rise right next to it (and former home of Derek Jeter!).

We are quite used to losing block after block of walk-ups for these huge luxury buildings they put up on the UES every week, but this is the first time I've seen one go up to the detriment of another high-rise. What happens to the people who live in the apartments (which are ALL window) on that side? Do their windows just look at a brick wall now? Do they re-negotiate rent? Is the building owner somehow at fault for not stopping the development and causing everyone's property values to go down?

Anyone who's been through this kind of thing have thoughts to offer?