[jiiam]

Yep, but the market itself would increase in size if people start adopting a first party solution (which would certainly be the case since people are lazy), and looking at adblockers usage rates it seems like a market share too big to pass on.

In the end, it is probably true that the competition is not really an issue, but Google need not "stop the existential threat to the whole industry that adblockers represent", because if it lets too many ads pass people will simply get back to the old third party adblockers.