If “the cost of doing business is too high”, then a higher price for service there is justified. But refusal to provide service at all is not acceptable. Capitalism allows a company selling widgits to decide where to sell or not sell them; customers can buy from someone else. But when a company provides a necessary product where customers have no alternative source, and where the company benefits from government interference with competition and government subsidies of various kinds, in that case government has every right to demand the company provide service.
When the state steps in to shield the company from competition in areas where the company refuses to provide service, that is pure crony capitalism. It is corrupt.