Let's not forget that Alphabet/Google have spent decades spending $millions on lobbying & gaining access to govt. decision-makers (Google's Jigsaw, formerly Google Ideas, was basically a part of the US State Department: https://en.wikipedia.org/wiki/Jigsaw_(company) ). They already have national & state admins direct lines & well-established relationships with them. Alphabet/Google also has similar relationships with the press & media corporations (Think of the $billions Google has spent on advertising). They'll get their slick PR messages out to the public before lobbying & arm-twisting their way into getting what they want from our education systems. It's what these large multinational corporations specialise in, i.e. getting govt. contracts, avoiding regulation & oversight, & gaining yet more access to people's data. The real competition is other big IT companies like Microsoft, Facebook, Apple, & Amazon.
What do Moodle PTY &/or Moodle hosting & support service providers have? They're not those kinds of organisations & would be hopelessly out of their depth if they tried. Moodle may be the more effective & efficient service/product for students', teachers', & admins' needs, but that's not what this game is about.
Moodle PTY has worked hard to establish itself as a trustworthy organisation with a huge global community behind it. I doubt there's an educational organisation & community in the world with as much good will & generosity as Moodle's.