If they can't compete with their advantages maybe they shouldn't be in that business. Just being able to do something efficiently isn't an abuse.
The short answer is that for-profit, privatized entities should not be privileged in competition. Community owned solutions, non-profit solutions, naturally occurring public alternatives to products, worker-owned and volunteer-maintained solutions, and so on -- these efforts are no less legitimate than a traditional Capitalist solution. If they produce better results than a VC-backed or privatized product, then they deserve to win.
In my mind, the difference between a free market and Capitalism is that a free market is OK with Capitalists losing sometimes. It's good for businesses to compete not only with each other, but also with forces and coalitions outside of traditional markets.
And worker-owned businesses aren't even that radical of an idea -- they're just a different way to manage the business and distribute profits. Open Source and nonprofits are much farther outside of traditional Capitalist markets than a worker-owned business is.
I'm all for efforts like this.
Well, we know what happens. Consider the compiler business. In the 80's, compilers cost real money. Today, compilers are free and are far better.
Although in the 80's I once counted 30 independent C compiler vendors. Those companies all dwindled away one by one.