I can only tell you what I read it as: it's about the current increase in regulations from the EU, this can be specifically read as a way to avoid getting regulated by DMA which aims to make any massively popular services have to have crossplay or compatibility methods that any other competitor can use.

It's basically asking any service to have a standard way of interoperability with everyone else, which ActivityPub can be considered for social media, and Meta is using federating with ActivityPub based services while getting blocked by them as a plausibly deniable way of interoperability without actually having to do that because they're blocked by most of the other services and they can surely find ways to block other popular servers by claiming that those servers are not doing as good of a job at moderating, allowing Meta to have their cake and eat it too basically.

I hope this helps, I tried to cover every possible way to explain it that I could think of. I tried to see if ChatGPT can help but I felt it was lacking.