A huge piece of it is the network effect of starting with a store that lacks a significant number of apps available on the Play store. Sure, a competitor could, over time, grow their store to be competitive, or they could fail to tread water and go the way of Windows phones.
I use a burner Huawei for non-essential Android stuff. Every time I click the "Rate App" button on apps, it redirects me to Huawei store instead of Play Store. Every time I click the "Download" or "Install" button on the browser, it sends me to Huawei store. I think we can expect to see more changes in the coming two years as Android keeps updating. Huawei phones up until 2018 are allowed to use the Google SDKs but none are allowed from 2019.
The only one left behind is Samsung, which has the wherewithal to create its own (Apple clone) app store. If they go ahead with that, Google Play will be a fucking joke at that point.
if anything,you're more open to potential exposure of your data ,bad verification practices and CCP intelligence gathering
The new Huawei phones don't have Play store or any Google services.
Major difference is that only the Play Store can install apps in the background. That is, unless you root your phone.