Record labels are gatekeeping and defending their moat. The existence of their industry relies on friction in the music distribution system - the easier it is to release music own your own, the less money they will make.
Correct, which is why the labels try to do things like this. If the labels pressure Spotify to kill the ability for independent artists to upload their own music, then they only way you get on Spotify is to sign with a record label. And if being on Spotify is important to you as an artist, then yes, you are indeed obliged to sign with a label.