By this logic Apple shouldnt be allowed to have Apps in its App store, right? Or are they banned from selling first and third party phone cases in store?

CVS shouldnt be allowed its own generic drugs.

At what point does this become "companies arent allowed to make/sell their own products if they also resell other companies products."

And lets be serious: you want to take away Google's ability to choose the ranking of results? Thats their entire company's purpose. People go to google because they like the order the results come in. If google starts delivering bad results, that opens opportunity for other companies.