Realistically, a company will charge slightly less than whatever your alternative is, and they will provide products that restrict the number of alternatives you have.
AWS, GCP, and Azure provide several differentiated products that lock you in to higher prices on everything else. Effectively, these three have an oligopoly on "highly differentiated cloud services." They are only competing with each other on those services, and they are competing with "servers plus ingress/egress costs to our differentiated services" on their commodity products. That is the real reason why AWS egress costs are so high. It prevents you from picking and choosing where to buy each part of your cloud footprint, and locks you into buying AWS. Bandwidth costs are what keep you inside the AWS/GCP/Azure walled garden.
Lower-end providers like Linode, DigitalOcean, Vultr, and Cloudflare have parts of the differentiated offering, but not all of it. These people will have lower prices than AWS/GCP/Azure since their offering is less differentiated, but they will still charge you more than you would pay by renting a server, since they offer more products.
Finally, hardware rental providers like Hetzner and other operators are competing directly with you buying the hardware and paying for datacenter space and bandwidth. Datacenters typically charge a premium for power, even when they are in areas with low-cost power.
Notice that none of these companies are competing with large-scale server buyers who have the same hardware/bandwidth/power costs that they do. As such, they do not need to pass the savings they get onto you. That is where they get their profit.
