There are shades of grey between "Apple takes 30%, gets to reject apps for any or no reason, and gets to auto-install Apple Music in competition with Spotify" and flipping the App Store to the Android model.
If apple was constrained from shipping apps that have competitors, they would effectively be prevented from shipping any apps at all.
Sure they have.
https://www.businessinsider.com/iphone-app-rejections-2009-1...
> Why did the folks at Tweetie add swear words to their program? Actually, they didn't. But something crude happened to be trending on Twitter at the time the app was submitted for review.
Or Google Voice:
https://www.cnet.com/news/apple-blocks-google-voice-app-for-...
Walled gardens have less thugs and shady alleys.
I say this as someone who has had apps denied by reviews for requesting a permission that was not needed inside of the version of the app I submitted to the store. They absolutely do review and vet apps for privacy and security.