The “extinguish” part refers to your competition, not to your own product.

You embrace a popular open standard, add new features to your software that build upon the standard (but are proprietary), then watch as your competitors die off because customers become locked into your proprietary features.

Similar to how Apple hijacked SMS to add iMessage and introduced all kinds of features and the blue/green bubble styling.

For the longest time, they refused to support RCS, trying to keep people on iPhone by making texting between iOS and Android suck.

Of course, a lot of people switched to third party messaging apps because of how much Apple was intentionally ruining texting, so now Apple has had to adopt RCS.

So the “extinguish” part can be hard to pull off given sufficiently strong competition.