This company is also beholden to its customers, they have to compete with other companies and individuals and can only profit if they are really good at what they do. If it is extremely profitable many others will jump on the opportunity, thus lowering prices. What incentive would a government granted monopoly have to improve?
And no, a government is almost never beholden to it’s people. It automatically has power, especially communist ones. The “democratic” one also only have to convince a few groups to agree on a few topics to get full controll.