The paradigm of competition is a race: by rewarding the winner, we encourage everyone to run faster. When capitalism really works this way, it does a good job; but its defenders are wrong in assuming it always works this way. If the runners forget why the reward is offered and become intent on winning, no matter how, they may find other strategies - such as, attacking other runners. If the runners get into a fist fight, they will all finish late.
Proprietary and secret software is the moral equivalent of runners in a fist fight.