There are only 3 effective browsers - Chrome, Safari and Firefox. I don't see how limiting Google's control will create competition. The barrier to more browsers is the massive investment needed to create one, not any action that Google is doing.
You are correct, although its more correct to say there a only 3 major browser engines, Blink (used by all chromium derivatives), WebKit (used by Safari and some minor browsers), Gecko (used by Firefox and its derivatives). Creating a browser engine is hard, so hard that even a multi billion dollar company like Microsoft gave up on doing it.
And we may soon witness Gecko going away as a side effect of the Google antitrust lawsuit.