> Last time I checked, there are about three hundred thousand different companies offering hosting, all over the world.

Last time I checked, AWS was estimated to have ~5% of all web sites in the world hosted in its infrastructure, while AWS+GCP+Azure combined equate to ~66% of the global cloud compute market. That doesn't even get into the "providers" who are really just reselling major providers at a markup (like Vercel).

It doesn't matter if your town has hundreds of storefronts if one subsidized Walmart is putting them all out of business. Likewise, if every business in town is dependent on the Walmart, then it's really Walmart that controls things and not individual or collective business owners.