[repsilat]

And what happens when the prices get jacked up? Ideally (perhaps too optimistically) new competitors will arrive on the newly competitive market.

If the loss-leading is unsustainable then it hardly needs to be discouraged, and if it's sustainable it's not really loss-leading. (If it's funded by some other venture with higher margins, like AWS, other players can compete in that market without the albatross of having to maintain the cross-subsidies.)