It's a good point that just because the word "competition" can describe them both, that it isn't really the same thing. When companies compete against each other, it's really just that their feet are held to the fire to be the best versions of themselves. It isn't as though they're pulling and tugging and adding or subtracting from each other.
It's more like trying to beat a high score in pinball; it's still a challenge of you against you, you're having the same experience you'd have if there was no "competition", you just have a motivation that wasn't there before.
Language is imperfect, it's cool to notice the times where it conflates two different things like this.