Definitely could be both, but I'd posit that it would still happen regardless of corruption, just because they're taking on the ambitious task of trying something new.

They definitely can dictate requirements, however that means that you're now making your staff play document format police.

I'm not saying it's impossible, just that it's an additional headache. If I were working in that office, I'd die a little inside each time I have to go back to a consultant/contractor/community member and say "can you please resubmit this, the formatting is broken when I open it in Libre Office"

Yes, again, they have the authority to do this, and it is technically feasible, but it's going to be a bad user experience for a long time until everyone is properly "retrained". Especially if you're working with partners outside of Germany who have their own document standards.

I'm not saying this is a bad move, just that I understand why they might be inclined to jump back and forth.

Oh, cool, so I can have multiple people editing a live document at the same time?