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Why is this legal? What kind of shithole country allows this?
The usual shithole country where capitalism and the free market has been allowed to run completely rampant. In Germany it’s even illegal to not allow users to use their own modem and router. You are entitled to use any company that serves your street. It might take a while longer if your building isn’t connected yet, but a landlord can’t just prevent you from choosing a company. Same with electricity providers.
It is a loophole in the current Federal Communications Commission’s regulations, where these kinds of deals are supposed to be forbidden. The Commission doesn’t seem to like it either and may close the loophole in the future, but the regulatory process takes time.