I don't agree with OSI either, and think their licenses are exploitative. But their definition is useful to call out orgs like FUTO.
The solution to devs being exploited by big tech is the GPL or AGPL, not whatever FUTO is doing. They're trying to have their cake and eat it too: earn the goodwill that comes from claiming you're open source, while keeping the same restrictions in place you'd see in a commercial software package, which keep users locked down to one vendor (aka "free beer" rather than "freedom")
This isn't a new idea invented by FUTO, it's called "source available". Gitlab is another example of this, as is Unreal Engine, and many others.