opens wikipedia (Emphasis mine:)

> Moats were excavated around castles and other fortifications as part of the defensive system as an obstacle immediately outside the walls.

Unfortunate wording?

Moats are supposed to be obstacles for your competitors, not your consumers.

Moats are obstacles against something you're trying to avoid. It can be competitors coming in, or customers going out. A moat could surround a prison to keep prisoners in. Some companies just choose to treat their customers as prisoners.

It's akin to building a moat inside the castle.