This is classic ISP behavior. Doesn't matter if the medium is a radio link from satellites in space or a coaxial cable or optical fiber cable on the ground - ISPs gonna do what ISPs gonna do - try in any way to block competition.
Without SpaceX, you're in a world where each LEO launch costs $500M and the tech is not good enough for handovers so you make that even worse by going to GEO. Even without being an ISP it is a monumental challenge to overcome.