Yeah totally I think this instance is fine too. I’m kind of speculating why some people seem to get a spooky feeling around stuff like this, even though on the surface it seems totally innocuous.
Government crowding out companies is absolutely a concern. I don't want the government running grocery shops or making video games.
But it works fine for infrastructure where competition is not only rare, but often is counter-productive, like for sewer and water delivery. Can this include software infrastructure? Maybe.