It does, in theory.
But in practice, there are zero options for managed hosting of MongoDB 4.0+ outside of Atlas that I'm aware of (and we looked, everywhere). By my understanding, from speaking with some sales/product engineers at third-party companies which previously hosted MongoDB or currently host 3.6, the terms of the SSPL are so vague that its effectively a card that reads "you can host MongoDB, but if you become a threat to Mongo's business, we'll find a reason to sue you, and we'll win". So, no one does managed hosting anymore, or they're still on 3.6 with no intention of upgrading.
Its possible that, if a hosting provider were to try and meet the terms of the SSPL, and succeed in doing that, and get some kind of validation of that success from Mongo or Elastic, then some form of precedent could be reached and that would increase confidence in the SSPL being defensible from a vendor standpoint. But, that never happened with Mongo. Maybe it'll happen with ES, given ES is far more popular.