It is expected that you use the license with an Additional Use Grant. For example, Hashicorp says:

> You may make production use of the Licensed Work, provided Your use does not include offering the Licensed Work to third parties on a hosted or embedded basis in order to compete with HashiCorp’s paid version(s) of the Licensed Work.

Or, for a revenue threshold:

> You may make production use of the Licensed Work, provided that your use is solely for an application or system developed or operated by an entity (including its affiliates) with total annual gross revenues of less than $10,000,000 USD.

That is the whole point - you can define your own limits for commercial usage, while keeping the rest of the license text unchanged.

The AGPL's "viral" property inhibits competition without prohibiting it - companies are just scared of accidentally becoming liable to publish private software sources. As far as I know, that's the reason it is banned at Google, Apple and other major companies [1].

That didn't stop AWS though, which is why we now have SSPL and the BSL.

[1] https://opensource.google/documentation/reference/using/agpl...