That clause appears to violate Item #6 of the OSI's open source definition:
> The license must not restrict anyone from making use of the program in a specific field of endeavor. For example, it may not restrict the program from being used in a business, or from being used for genetic research.
It also seems to violate freedom 0 of the FSF's four essential freedoms that define free software:
> The freedom to run the program as you wish, for any purpose (freedom 0).
I'm not sure this can be used by open source projects if they want to remain open source projects.
> The license must not restrict anyone from making use of the program in a specific field of endeavor. For example, it may not restrict the program from being used in a business, or from being used for genetic research.
It also seems to violate freedom 0 of the FSF's four essential freedoms that define free software:
> The freedom to run the program as you wish, for any purpose (freedom 0).
I'm not sure this can be used by open source projects if they want to remain open source projects.