Might as well not be for many companies; I know many who are not allowed to even glance at AGPL code for fear of getting infected (and sued).
The “problem” with AGPL is companies who want to use open source software to build proprietary stuff on top without contributing anything back. AGPL is purposely designed to avoid this kind of parasitic behavior, but that doesn't make it “not open source” quite the opposite: it's “forced open-source”.
It is indeed restricting companies' freedom though: their freedom to restrict their user's freedom.