Google has no documentation on analysing competitors' links, so we will not attribute a method to it. Its Links report in Search Console covers links to your own property: top linked pages, top linking sites and the most common link text. Data about other sites' links has to come from elsewhere.
Google's documentation does tell you what to be careful about when reading any list of links. Links marked sponsored, ugc or nofollow will, according to its guidance on qualifying outbound links, generally not be followed. And the Links report help says that for known spam sites Google typically ignores the links. So a raw count of a competitor's links is not a count of links that do anything. That is our inference from those two statements, not a Google claim about any competitor.
What the analysis looks for is a matter of judgement: where the links come from, why those sites linked, and whether the reason is something you could credibly match.
Even your own data is summarised. The Links report groups sites by root domain, leaves out subdomains, and combines duplicate link text. Any comparison with another source should allow for differences in how links are counted and grouped. The useful output of this stage is a set of reasons, not a list of domains.