In a way it's hinting at the need for anti-trust barriers similar to how India barred Amazon from both running a product marketplace and offering it's own products in the same marketplace.

I can see both sides of it though. If there are an anti-trust barrier between running AWS and offering major services on top of it, there would be a better overall segregation and likely more innovation overall. On the other hand, putting up a barrier there would be both complex and leaky, and cause missing out on sorts of efficiencies from close integration of cloud platform + services.