Networking is not online-multiplayer as it highly depends on how your wrote the server and I don't believe that that Epic is giving you the desired server and remote gameplay for free
What I said was that, if you use player hosting, Epic Game Services will host the matchmaking and other game services for free. One of the players game instances need to be the “host” (as I wrote above.) This is generally not that hard to implement, as all of the support to do this already comes with the engine, and the blueprint and object systems all have network-specific features ready to use. (You have to actually use them, of course.)
If you need server-side authority, such as for a MMO, a competitive MOBA, or a competitive shooter, then, yes, you need to host your own servers. GameLift can help with this, for example.
It doesn't matter “where” the server is as there needs to be a server however you define it. And there comes the difficulty of creating multiplayer gameplay. It isn't enougth to just get and send some packages of data, you have to synchronize game states and whatever your game also requires
I feel like you're either missing the point of my post, or you haven't actually used the built-in networking/replication/hosting/sync features of Unreal. Yes, you absolutely have to not do stupid single-player hacks when you develop your game, but all of the built-in controllers (character movement, projectiles, simulated physics bodies, vehicle controllers, and so on) work out of the box in networked mode, and the engine has a handy “start two separate instances of the game, with networking between them” button right there in the tool bar!