A man’s gotta do what a man’s gotta do.
Every instance gets to decide on its own, there’s no set of rules governing the whole thing. That’s why I stated this is my opinion, not some hard and fast rule.
For example, I’m personally of the opinion that instances should be allowed to federate until they prove themselves to be bad actors, but in Meta’s case there’s a lot of existing evidence that shows they shouldn’t be allowed to federate in the first instance.
Monopolies for modern necessities (the internet and phone) don’t have to worry about customer retention.
DC has a local criminal code.