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WordPress vs. WP Engine Dispute: A Legal Showdown in the WordPress Ecosystem

The ongoing legal dispute between WP Engine and Automattic is a complex case that reveals deep-rooted tensions within the WordPress ecosystem. Both WP Engine and Automattic have been central players in the growth of WordPress, but their recent clash has triggered questions about governance, business ethics, and the future of open-source development. Let’s break down the dispute in detail, covering both sides’ arguments, the legal complexities, and the broader implications for WordPress users and developers.

Background

Automattic

Automattic is the for-profit company behind WordPress, led by Matt Mullenweg, who is also a founding developer of WordPress itself and serves on the board of the WordPress Foundation. Automattic’s mission is to “democratize publishing” through WordPress, which is open-source software available for free to anyone via WordPress.org.

WP Engine

WP Engine is one of the largest managed WordPress hosting providers, catering to businesses, agencies, and developers that want optimised WordPress hosting. The company’s business model relies heavily on the WordPress ecosystem, offering a tailored hosting environment with performance, security, and support features designed specifically for WordPress sites.

WP Engine’s Lawsuit Against Automattic

In early October 2024, WP Engine filed a federal lawsuit against Automattic, Matt Mullenweg, and WordPress.org. The lawsuit alleges several significant claims:

Extortion and Unfair Competition

WP Engine accuses Mullenweg and Automattic of trying to extract a revenue-sharing agreement under the threat of being blocked from essential resources on WordPress.org. WP Engine claims that Automattic demanded up to 8% of WP Engine’s revenue. When WP Engine refused, Automattic allegedly started restricting their access to WordPress.org updates, plugins, and themes. WP Engine characterises this as an attempt to monopolise the WordPress ecosystem.

Libel and Defamation

WP Engine also claims that Automattic has been spreading false information about the company within the WordPress community, harming its reputation. Specifically, WP Engine alleges that Automattic has tried to paint them as non-supportive of open-source principles, which WP Engine says is a misrepresentation.

Interference with Contractual Relations

WP Engine argues that Automattic’s actions have negatively impacted WP Engine’s relationships with its partners and customers. For instance, by restricting access to WordPress.org resources, WP Engine says its service quality could be compromised, affecting clients who depend on WP Engine for seamless WordPress integration.

The lawsuit, which is available in full on WP Engine’s website, also includes allegations of computer fraud and trademark violations. WP Engine accuses Automattic of blocking certain technical functionalities, which they argue violates the open nature of WordPress and the WordPress.org platform

Automattic’s Response – A “Meritless” Case

Automattic has responded strongly to the lawsuit, calling it entirely baseless and meritless. In an official statement, Automattic dismisses WP Engine’s allegations as fabrications and vows to fight the case in court. They argue that WP Engine’s claims mischaracterise their business dealings and accuse WP Engine of exploiting the open-source project without offering fair compensation.

Automattic also points out that they are focused on protecting the integrity of WordPress, ensuring that it remains a free and open platform for everyone. Neal Katyal, a former U.S. Acting Solicitor General and Automattic’s lawyer, further emphasised that the lawsuit has no legal basis and that Automattic intends to pursue all available remedies against WP Engine.

Conflict of Interest Allegations

A significant element of this dispute revolves around Matt Mullenweg’s dual role as the CEO of Automattic and a director of the WordPress Foundation. WP Engine claims that Mullenweg has used his influence within the Foundation to unfairly prioritise Automattic’s commercial interests, violating the principle of open governance that the WordPress community values.

Critics have long expressed concerns about this potential conflict of interest. The WordPress Foundation is meant to oversee the open-source WordPress project in a way that is fair and impartial, but WP Engine argues that Automattic, a commercial entity, is wielding disproportionate control over the platform.

The Open-Source Debate – Fair Compensation or Exploitation?

This lawsuit also raises larger questions about the sustainability of open-source projects. WP Engine is built on the WordPress platform, which is free to use and modify. However, WP Engine generates significant revenue by providing premium services on top of the open-source software. Automattic argues that companies like WP Engine benefit immensely from WordPress but do not contribute enough to its ongoing development.

Bruce Perens, a key figure in the open-source community, remarked that open-source development has long been underfunded, with many contributors working voluntarily. He believes that WP Engine’s refusal to share a portion of its profits with the WordPress Foundation represents a broader issue in the open-source community, where developers are often left without fair compensation despite the commercial success of their work.

The Takeover of Advanced Custom Fields by WordPress

In the latest chapter of the dispute between WordPress.org and WP Engine, Automattic (the parent company of WordPress.com) has taken control of the Advanced Custom Fields (ACF) plugin, a popular tool for customising content editing screens. This move is seen as part of Automattic’s strategy to counter WP Engine, which previously owned and managed ACF.

The takeover, which Automattic justified as necessary for security reasons, has stirred controversy. Matt Mullenweg, co-founder of WordPress, announced that ACF was being “forked” into a new plugin called Secure Custom Fields (SCF). This was done to “remove commercial upsells” and address a security vulnerability within the plugin. WordPress invoked its Plugin Directory Guidelines, which allow them to make changes without developer consent under certain conditions. As a result, any site using WordPress.org’s update service that had ACF installed was automatically switched to SCF if auto-updates were enabled.

However, WP Engine and the ACF team expressed strong opposition, claiming that the plugin was taken from them without their consent. They described the action as unprecedented in the 21-year history of WordPress. WP Engine now provides updates directly from its own servers for users who still wish to stick with ACF rather than switch to SCF.

This move is seen as an escalation in the feud between Automattic and WP Engine, as WP Engine has been excluded from the WordPress.org ecosystem due to their legal battles and competitive friction. For many developers, the forced switch from ACF to SCF is seen as a power play by Automattic, deepening the divide between the two companies.

The impact on developers has been significant. Many who rely on ACF for custom development are concerned about the future direction of the plugin under Automattic’s control. Some worry about the potential changes to features, or even long-term support. Others see it as a necessary step for maintaining security standards within the WordPress ecosystem, but the manner in which it was done remains highly contested.

This case highlights broader governance and control issues in the WordPress ecosystem, as companies like Automattic and WP Engine vie for influence in a platform that serves millions of websites worldwide.

For more information, you can check out detailed reports on this issue from TechCrunch.

What Does This Mean for WordPress Users?

The implications of this legal battle for everyday WordPress users and businesses could be significant. If WP Engine loses access to critical resources on WordPress.org, WP Engine customers may experience disruptions in service. This could include problems with plugin compatibility, theme updates, and WordPress core upgrades, which are essential for security and performance.

Moreover, the case could set a precedent for how open-source projects interact with for-profit companies. Should Automattic succeed in its arguments, other companies that rely on WordPress may face pressure to contribute financially to the project, altering the business dynamics within the WordPress ecosystem.

The Future of WordPress Governance

At the heart of this dispute is a debate about the governance of WordPress itself. The open-source nature of WordPress has allowed it to grow into the world’s most popular content management system, but as companies like Automattic and WP Engine scale their businesses around the platform, questions arise about how control should be distributed.

The outcome of this lawsuit could reshape the WordPress ecosystem, influencing everything from how updates are managed to the financial relationships between the WordPress Foundation, Automattic, and other third-party businesses

The Battle for the Heart of WordPress

The legal dispute between WP Engine and Automattic is a watershed moment in the history of WordPress. As this case unfolds, it will shine a light on the tensions between open-source ideals and commercial interests. Regardless of the outcome, the WordPress community will likely see changes in how the platform is governed and how commercial entities interact with the open-source project.

For now, all eyes are on the courts as WP Engine and Automattic prepare to battle it out, with the future of WordPress—and its millions of users—hanging in the balance.

Read More Yourself

WP Engine’s Official Lawsuit Document

Automattic’s Response to WP Engine’s Lawsuit

TechCrunch – “In latest move against WP Engine, WordPress takes control of ACF plug-in

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