Would it change even further if people moved there BECAUSE Walmart was the only store that was allowed to operate?
And since someone will ask "why would you want that?". The analogy won't completely work, but I'll go with it. When my son wants to buy a bike, they go off and bike a bike. I can be sure that they bought it at Walmart, and that Walmart has done some work to make sure the bike is safe for my son.
If I don't have that, then maybe he buys a bike at "Joe's bike shop". Maybe that bike was made poorly in China. I don't know that the bike he bought was safe.
I mean, https://www.cnet.com/news/just-as-critics-feared-fortnite-fo.... And, what do you know, Sweeney was mad at Google for finding it.
But a lemonade stand in a Walmart wouldn't necessarily harm consumers, and lots of things Apple blocks or requires a cut of wouldn't either if things were changed.
Going back to an iPhone, the answer is usually "you don't have to use any other app stores". But what about if I _do_? What if I have to use the new Coronavirus test that requires an app? And the only way to get the app is to install Abbott's app store? Are you guaranteed that they aren't also consuming all your health information?
My view would be different if Android didn't exist, or if iPhone had a much higher market share. But for now, I'm happy to pay extra to be in the walled garden, because I trust the king of the castle to try to protect me (as opposed to figuring out who to trust out on the street).
For physical marketplace we should define relevant geographic market. A relevant geographic market is the area where they the conditions of competition are sufficiently homogeneous. For buying lemonade it's not the case that consumers can reasonably only shop inside Walmart.