It’s perfectly valid to seize or forbid account that break the law. And if a company facilitates others to break the law you ask them to stop. In this case the company refused to… so now they are in trouble too.

If Brazil had a law that requires cars to be limited to 100km/h then they need to modify their cars to meet the law. And with ota updates do this in that country. If someone imports a car and it’s not updated even though the manufacturer knows it is in that country, they also breech the law.