This applies to all software that is part of a commercial interaction, no matter whether the other party has to pay for the software or not. The software could be part of a device or be part of a certain service.
I understood that as long as the developers of open software are not involved in a commercial interaction, they cannot be held liable. I guess that if you receive some kind of support (a grant) for developing open source software, you are not immediately in a commercial interaction. But if you have some kind of agreement with an organization to develop or maintain open source software specific for that organization, that could count as commercial interaction.