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FFG has a license from GW to produce 40K-related materials, namely four different (but related) RPGs, so I don't really see them in direct competition.
GW enjoys its market-dominance for basically being first on the scene. It's got a very long history and presence in the market, and given that it's such an investment of time and money to get involved in, a lot of people stick with it over the course of many years.
There's also the fact that, despite the fact that its setting is cobbled together from a dozen or more other sources, it strikes a good balance of fantasy and dystopian science-fiction to feel unique, so its setting definitely has a lot going for it.
EDIT: Actually, make that five 40K RPGs.
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