FairCoin is a digital currency. In order to be a digital currency you need stability in the currency among many other things, such as infrastructure like ATMs, debit cards, things that the average person would be used to. But stability is the key factor because that affects the fees charged within the ecosystem. There's also no inflation with FairCoin (not necessarily a factor for being a digital currency, just stating differences)

Steem seems to be a social currency (with quite a bit of inflation, though as I understand it, it levels out at some point), not a digital currency (as per the above definition). Also, no one controls FairCoin, I'm not too sure of the hierarchy within the Steemit ecosystem with respect to DPOS (Delegated proof of stake).

All this being said, I don't see FairCoin competing with Steem.