Government should just require open communication protocols/file formats, if a competitor is willing to host the same data at cost. Client applications should compete on their individual merits, not coast on protocol lock-in. Would WhatsApp or YouTube have as many users if others could build clients for the same data? (PII etc notwithstanding) Protocols compete on the merits of the protocol, clients compete on the me…
Companies can iterate on their products much faster if they're not required to publish all of their functionality as public APIs. Once the APIs have been published, it's much harder for them to be changed. Doing this also puts them at the mercy of whether or not client applications are willing to support their new functionality. Maybe YouTube wants clients to adopt some feature, but a powerful client application does…
If a client application refuses to implement functionality, that's on them, not the original developer. If I want the new feature, I'll switch.
These days however, new features nowadays are usually things I don't want. Not strictly outright anti-features, but usually completely pointless "Bob needs a bonus[0]" changes that lets a middle manager put something good in their promo packet. The whole reason why people want compatible file formats and third-party clients is specifically so we can dictate to the originator of those formats and protocols how and how fast they can iterate on their products and limit how bad they can deliberately make them to increase profits.