No, that is just flat out not true. Not having Google Play Services on a device in the US or the EU is a non-starter. It would never take off, and it would not

No, that is just flat out not true. Not having Google Play Services on a device in the US or the EU is a non-starter. It would never take off, and it would not have a chance in the market. So no, there is not plenty of competition for that. As such, Google is not allowed to abuse their monopoly position in that area to extract extra concessions from OEMs. If Google was not licensing it out, then sure, they could do whatever they wanted. But they are, and as such, they are not allowed to add anti-competitive terms to their contract. If they don't like it, they don't have to sell their services in jurisdictions with functioning regulators.