If they manage to get monopolies over geographic areas then yes, you get exactly what we have today. However, for a couple of years after 1990 we actually had

If they manage to get monopolies over geographic areas then yes, you get exactly what we have today. However, for a couple of years after 1990 we actually had quite a lot of security companies that were competing peacefully in the same areas (Romanian police being absolutely irrelevant at a local level, with the reorganization of the state that was taking place). Of course, once the state got re-established "properly" that was quickly ended.