Correct me if I’m wrong here but a company can’t dictate what you do on your own time on your own hardware, so I assume this simply affects work computers. Assuming thats the case I don’t really see a problem here. I’ve never been able to download any applications at all on any work computer I’ve ever used short of apps the company itself uses.

Seems completely understandable to me to bar employees from using a competing service especially if there are genuine security concerns.