There are plenty of giants that are super relevant in the global market but get their ass kicked in specific markets by the local offering. Like ebay, Uber, Starbucks, Taco Bell or whichever US brand/company you can think of.

Telefónica is nothing globally compared to Cloudflare. But in Spain it competes in some areas. Exactly where this ban is happening.

It is not hard to see a conflict of interest.