This is a well known practice and recent trend actually (Redis, Mongo, Confluent, ES...the list goes on). You choose a license that is restricting the usage of

This is a well known practice and recent trend actually (Redis, Mongo, Confluent, ES...the list goes on). You choose a license that is restricting the usage of the software for certain class of users, whether that is cloud providers, SaaS services, your direct competitor, based on review or what not. By OSI definition this is not any longer open source software, but source available. There is a simpler way too: just pick a business unfriendly license and sell exceptions that is the dual licensing too. Check licensezero for how to automate this.