I'm not even remotely a legal expert and I don't know what type of popup that is but I think the anti-competitive piece is "could Google use the same technique to push the user to switch to google search on Edge or not?".

If this was an ad from a web page OP had opened or from the game and if clicking "Yes" only directed the user to a site with instructions on how to switch default search engine on Chrome, then yes, obnoxious but probably fair. Google could strike a deal with the game developers to push their search engine to Edge users or buy an ad. Someone writing a new browser or search engine will probably have considerably less money than Google but could reasonably do something similar to try and gain market share.

On the other hand, if that popup comes from Windows itself and especially if clicking "Yes" directly changes Chrome's settings, then this is Microsoft using their ubiquitous (on desktops) OS to nudge more users to switch a competitor's browser to their own search engine. Google, or even less a new competitor. would probably not have the same type of OS-level access to switch the settings of a different browser.

Using a dominant market position as leverage against competitors, is per definition Anti consumer and anti competitive.

Apart from that, they are basically hijacking a competitors product to show this, which I think if not already illegal, it absolutely should be.

I think this sentiment come from the long history of Microsoft repeatedly breaking and then failing to address antitrust requests. At this point people just assume bas faith.

I remember maybe a decade ago how it seemed a big deal anytime they used their OS monopoly to fuck with 3rd parties alternatives. But yeah, I don't think every popup and annoyance is a crime. There's a fine line they walk to still push their first-party garbage.

It’s about it being annoying or not. Microsoft is in a market position where they can leverage their different departments to heavily upsell you on other services. They have an unfair advantage that shifts the entire market to their favor, thus making it hard for any competitor to keep up or even enter the market.

E.g. they use every service / product they have to integrate Bing, they artificially limit the use of their chat bot to Microsoft Edge, they show Bing advertisements when you visit their competitors sites, they allow you to use Teams for free under certain conditions (if you already bought other products), they use their foot in the door with Microsoft Office / Windows go upsell you on Azure, …, Game Pass, …

I can go on and on. Some of them aren’t necessarily bad on their own. Some are. It paints a pattern of what Microsoft used to be. They actively used their position to try and create market conditions that would break their competitors or make it at least hard for them to even compete. About 15 years ago a lot of folks believed Microsoft had changed and were playing fair (in certain bounds), they invested a lot into open source and were generally a more friendly company. What we are currently witnessing is them going back to their old ways of doing things. Slowly tying everything back together. Probably under the assumption that this time the governments are sleeping and not really regulating it anymore. A lot of that is happening in the somewhat non-regulated cloud market anyways.