It is paid competition. It has nothing to do with organic search results.

Google Keyword Planner is a tool for Google Adwords so what ever competition you see that will for advertisers only.
For determining keyword competition you can use tools like KwFinder or Keysearch.co to get a better idea they determine some metrics to bring the results for you but make sure they are not accurate always.

Pretty sure it's to do with Adwords competition not organic results.

It is definitely for AdWords text ads and has nothing to do with organic search. That said, if you have zero money and cannot afford a decent keyword competitive ranking tool, you can make a very loose correlation that if people are paying a lot to advertise for a keyword, they are probably spending a whole lot of time doing SEO for those phrases and therefore, they are probably pretty competitive for that, too.

Of course, if there is not much profit in a search, the bids are going to be much cheaper and that will show up as "low competition" in GKP. It might still be pretty competitive for organic search, though. Likewise, if it is a product that Google does not allow advertising for, it will always show low competition because nobody is allowed to bid on it. So, you can make organic guesses with the Google tool but there are many cases where those guesses are just plain wrong.