https://bsky.app/profile/glynnstewart.com/post/3leu7lzvy622g
There's entire genres like litrpg, progression fantasy and cozy fantasy that likely would either not exist or be a fraction of their current size without it.
And authors can make a living, there's plenty in those genres (not to mention romance) who via a combination of patreon + KU + Audible are doing just fine.
I too wish there was someone who could compete with amazon, but the thing is nobody seems to actually even try? I feel like the entire book industry would be quite happy if things had remained stuck in time circa 1990, on their own they would never have invented something like KU.
Apple was starting to compete, got sued by the US government for it, and decided they didn’t need to bother.
US market is heavily skewed in Amazon's favor though.
If you were to list occasions where entities acted intentionally against their best interests then that would be more noteworthy!
If they fail to, it will usually be an oversight than a deliberate strategy.
Of course - some companies push harder, overstep more bounds and neglect the possible negative 2nd order effects more. But assuming there's an obvious lever that says "make more money legally" - the vast number of companies will reach for it.