The WordPress codebase is open source, with Automatic being a major contributor. Automatic also offers WordPress hosting via their .org domain. WP Engine (WPE) is a separate company offering its own WordPress hosting and products like ACF, which enhance the WordPress ecosystem.

The issue between Automatic and WPE is that WPE relies on Automatic’s update servers to support their for-profit service. Given WPE’s scale, it’s questionable why they continue to do this, as many smaller companies set up their own servers for updates.

I work with WordPress and CI/CD systems, and even one man operations maintain independent build systems to avoid vendor dependencies. When updating, they use copies of original code hosted on private GitHub accounts and their servers rather than relying on external resources.

This matter should have been resolved in court. While Automatic’s actions have caused some backlash, they’re understandable as protective measures. WPE’s reliance on free resources without their own package/update servers is, frankly, inexcusable at their scale—it’s essential for customer support and product quality.

In short, this is about a competitor misusing free resources under "reasonable use" terms, facing consequences, and shifting blame rather than helping their disrupted users.