Big customers don't pay list prices, they get negotiated rates. To the extent Azure and GCE are interested in competing on price, it's the big customers they're after. All cutting list prices would get them is a bunch of price sensitive small fish, and that's not where the money is.

Remember that Google doesn't pay for bandwidth in either direction due to it owning such a large percentage of the backbone. But yet it still charges the same egress fees as the other cloud providers.

No large customer pays retail for anything anywhere.

I think we're finding that tech oligopolies don't lend themselves to healthy markets. The barrier to entry to becoming a full service public cloud is massive. The established players know that there is little chance of an upstart coming out of nowhere to eat their lunch, so they compete (or don't) appropriately. Getting cutthroat on pricing would only hurt everyone's bottom line.

Smart phone apps are the same story. Android and IOS developers have to deal with draconian rules and exorbitant fees. In a healthier market other companies would swoop in and improve on those huge fees and arbitrary moderation, but creating a new smartphone platform is ridiculously difficult, which means that the two established players can basically do what they want within the law.