Yes -- so if the company falls behind, maybe using some open source code could help you keep up. At least that's what I've felt looking at things on github/gitlab/etc has helped with, if done the right way :)

Let me try to draw a picture. Say you have a web based game engine. It is the only game engine as a service in the market which also runs in a browser. Then, a popular open source game engine becomes web based too. Before, you had no competitors, now you have to compete against a product that's free.

You may lose some costumers that only cared about it being web based and who are willing to learn another engine. Not only that, a single guy decides to host the game engine in the cloud and charge really cheap for it. Now, if you want to compete in price, you probably have to fire all your game engine devs and significantly downsize. Either that or have vastly superiour features to justify your higher price in the eyes of the costumers. All that threats your company's existence.

I'm not saying it's impossible to compete, but the more overlap between your product and a free software product, the bigger the threat will be.