[Analemma_]

I'm not actually sure that having multiple suppliers reduces extortion? If you have a policy of "no single supplier", then supplier #2 can extort you just as much as supplier #1 does under a single-supplier policy, because you have no choice but to keep funding them.

I'm pretty sure this is what's been happening with Blue Origin: in 25 years they've delivered close to nothing, but they keep getting contracts because "we need a SpaceX alternative". What is that if not extortion.

(EDIT: the sibling comment correctly points out that Boeing is an even more obvious case. Starliner is a money pit, but we have to keep throwing more money down it so that there's no single supplier)

[IAmBroom]

Extortion requires applied force from the vendor to the customer. You're simply describing failure to deliver goods.

Words have meaning.