It's main consideration appears to be to make changes in a way that makes sense for a tree consisting of maps and lists without ever losing user input. If you look at their diagram with examples you get the gist of their resulting heuristics, which basically boils down to "only delete if a user explicitly deleted, otherwise keep both values if users try to set the same value to two different things", "if two complex values (maps,list) have been updated, recursively merge them", pretty much.

It will cause stuff that users will perceive as conflicts, and that may even appear to be totally illogical (one of their examples leaves an object that appears to be in a broken state, because one side deleted it, and the other side updated a single attribute, leading the map to continue to exist, but with only the one updated attribute) so there's probably room for improvement, though the rules are simple enough that many of these could be resolved at application level by just carefully deciding what operation to provide.