Earlier quoted context omitted.
This is strange to me and basically says the engineers are not allowed to compete...
This is similar to the limit imposed on various motorsports. It's not that engineers aren't allowed to compete (they most definitely do, within the limitations imposed by the sport's governing body)--the rules exist to level the playing the field a bit between teams and companies with radically different budgets.
For example, the trend of the past few years is to limit engine capacity and reduce fuel consumption. So the rules say your engine must go down from 3 liters to 2.4 liters capacity and now it's your job as an engineer to maintain the same horsepower (of roughly 800 hp) at that lower capacity.
Actually, changing those rules every year puts teams with lower budget at disadvantage: they are basically limited to buying engines from richer teams, because they wouldn't be able to keep up with all those rule changes on their own.