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One aspect through which one could argue that they might stifle competition is their price parity rule, for which it seems they are being sued. See here (not sure if there is any new development.
Hard to compete with steam if you cant at least do it through lower pricing. Although this article suggests that at least for epic exclusives publisher seem to prefer to just pocket the difference, rather than pass on those savings.
No it means that if the game is for sale on Steam then it can be sold elsewhere (GOG, EPIC…) but it’s in the contract with Steam that it can’t be sold for a lower price elsewhere, it’s not about Steam keys sold by third party vendors.