That's how competition should work. Every layer should have multiple providers until the companies get all of their profits squeezed away and users get the best possible price.

A "layer" itself represents costs that can be eliminated which can lead to lower prices for buyers.

That is why vertically integrated businesses can peel away business from existing non vertically integrated businesses with lower prices (legal liability notwithstanding). Sometimes it pays to have the business with more to lose insulated from liability by having a layer without much to lose.

I sometimes prefer to enjoy the benefits of vertical integration, like Apple being able to codevelop hardware and software unrestricted from having to provide a public API at every layer (e.g. airpods device switching), and being able to unilaterally dictate user experience guidelines to app developers (e.g. ask app not to track).