Apple doesn't allow competition on their device because they know they can't win if forced to compete. Apple, even with all its resources, can only be spread so thin. By hobbling the ability to run your own engine, they don't have to try very hard.
This is the same reason they don't allow open installs. If they like an idea, they can compete at 30% more margin and with their army of engineers. Look how easy it is for them to enter the banking and movie businesses.
Keeping developers weak means they yield all the leverage. It's the modern anticompetitive playbook.
The DOJ can restore the balance by forcing Apple to open up compete fairly. It'll make for better software and products all around.