I do think the playing field should be fair. First party solutions shouldn't have an unfair advantage over the competition.
However...this seems to missing the very important distinction between local and cloud AI. Apple has put a good amount of effort into keeping their AI on the device so that privet data isn't sent even to their own cloud (yet to be seen how well that ends up working).
It is completely unreasonable for 3rd party services to demand user data be sent into their cloud when the first party offering does not do that by design.