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Proprietary just means owned and/or controlled by a single entity, usually a commercial company.
Apple's operating system is based on some open source software, but includes proprietary code too. Microsoft products are all proprietary.
The main problem with proprietary software is proprietary file formats, especially undocumented file formats.
Apple is very bad in this area, with no information being publicly available on many of their file formats for current user-level software (e.g. Pages, Numbers).
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