I think this is not just AF/KL but for all European carriers. With mergers going on people travel from and to Europe are left with very few choices.

It's protectionism, and this is a total opposite of open competition.

If EK or any gulf carriers offer cheap and good alternatives and people are willing to go for it, then why not? Especially for Y class pax, European carriers are not particularly good at it - bad catering, bad CS, old aircraft etc.......you name it.