Full disclosure, founder
That looks pretty open source to me. It's not the most permissive license, but neither is the GPL...
> Any redistribution or use is for noncommercial purposes only and is not redistributed or used in connection with any application that is substantially similar to the Selected App Idea.
From the open source definition :
> 6. No Discrimination Against Fields of Endeavor
> 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.
This is "visible source", not open source.