Yes, SmartPrice automatically takes the Competitive Price Threshold (CPT) into account when repricing your SKUs.
If your listing is priced higher than a listing for the same item on the websites of other major internet retailers, it will become ineligible to win the Buy Box. SmartPrice will detect what CPT your item has (shown in the Listings grid) and will not reprice above it.
Make sure you set a minimum price that is equal to or below the CPT of each item. If you choose to input your costs and margin instead and let SmartPrice calculate a min price for you, make sure your margin allows SmartPrice to set a low enough price. If your min price is above CPT, SmartPrice will still respect your min price, which will result in your offer becoming ineligible for the Buy Box until your min price is lowered. SmartPrice will not reprice your listing until the min price is lower than the CPT.
You can see whether any of your items have a minimum price set too high for CPT by going to Dashboard > Your Catalog and checking the number above “Min prices over Competitive Price Threshold.” Click on the number to view these SKUs and edit their min prices.