The problem compounds when Google and apple are both horizontal and vertical oligopolies.
If I complain that adwords scammed me (in a court of law), they could retaliate by terminating my GCE instances and gmail accounts.
That's different, Google search AFAIK is a monopoly. And an oligopoly by definition are not monopoly. If Google and Apple conspired together to prevent competition, that would be illegal.
But AFAICT, the remedy for the developer is to simply not develop on Android. You're not making a strong enough case here for what would appear to be an argument for government intervention.
Anti-competitive behavior would be if Google bought up all the manufacturers in China say. And kicking off a developer off the play store doesn't do anything to Apple as far as I can tell.
Incorrect. The easiest way to identify a monopoly is to identify the number of competitors in that space. Google has at least one meaningful competitor to Android -- Apple -- so it can't be a monopoly.
Anticompetitive behavior would be illegal, except this isn't anticompetitive, since there is a meaningful competitor, Apple, and Google isn't locking this developer into Google's platform -- in fact it's the opposite. This is just merely bad behavior -- also one that could be corrected by the markets.
It's worth noting there was a time where Microsoft was the big bad monopolist, and everyone was clamoring for the government to break them up. In the end, it was deep competition from Apple and Google that knocked them off their throne, not some big FTC antitrust lawsuit.