The two security features Google Play provides beyond web-installed APKs are the malware scanner that runs during app submission, and the ability to quickly delist apps that are discovered to be bad. Both could be opened up to all software sources rather easily.
The point is, there is due process, rather than a monopoly deciding who can do what with no recourse. Court battles are ugly, but the mere existence of law and due process stops most bad behavior before it even begins.
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The law only matters if you have enough money to enforce your rights. If one side is well off and the other is destitute, how well do you think rights enforcement, or defense of, works?
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