I'm not sure what the alternative is. Is there will from Firefox to support a "standard browser config", at which point GSuite could add support for managed Firefox config? If you want managed Firefox, Mozilla could offer that as well (they have something but it's different enough).
The alternative that we've used for the past 100+ years is to force such companies apart. Is Google Docs allowed to offer a "managed chrome" policy? Sure. Is Google Chrome allowed to be a browser? Absolutely!
But if either side is close to a monopoly, both cannot be part of the same company, even if that means breaking an existing company up.