Slaps on the wrist are harmful especially for those receiving slaps on the wrist. No moral development.
How does this apply to a FAANG company? Nobody knows--better than another FAANG company. Yes they know each other yes they hire each other's employees yes cross-polination yes yes yes--but they also compete. And when they hold back on competition, they at least do the public the favor of doing so at a very high cost--like Apple taking $20,000,000,000 from Google in exchange for not entering the search engine market. So there the higher the price extolled, the better for the public. The higher the price, the harder for Google to pay it to avoid competition, and the more likely it will not be paid which leads to competition.
In practice every FAANG company competes against all the others on everything. This is a success! Google can't beat Apple on smartphones, and Apple can't beat Google on search (even if they wanted to), so both companies have money, so they duke it out in every battleground beyond their moat. If they don't have a moat, however, they go to shit and can't carry out that competition in every other field.