Card companies have always done this over the years, not that it should be allowed in the first place. The real thing everyone is having an issue with is how Itch.io went about it, with them shadowbanning everything nsfw and starting to remove games before even making an announcement what was happening or that it was going to happen in the first place. I mean, that's being a responsible site runner 101, to actually tell your user base what is going to happen before you do it. Instead they just nuked it from orbit and started sifting through the rubble before going 'oh yea, new content moderation rules...' which screws over anyone who bought one of the now banned items as well as the developers who had money still sitting in the account.
And that's EXACTLY the problem, These payment processor companies are running wild for all these years without anyone keeps them in check. So their power is growing day by day. To the extend to be able to fully nuke itch and steam just in a few days.
Only LAW should have control over what people can or can not do, Not some for profit Corporations that solely exist to make money.
Note Itch Ban Reason is "meet the requirements of our payment processors", Not
Legal compliance, meaning These payment processors can change the terms whenever and however they want.
Itch is a victim, Like Steam, and any platform that's infected. If I'm running a platform, I also don't want things that can cause me trouble. Especially from Payment Processor which is their bloodline of existence.
Could them have done better to stand up against it? Probably. But I wouldn't know, neither do you.
It's on you to think them as your friend that always hv your best interests on top priority. Spoilers: they don't.
Those Privileged Karen Groups that cause all these bans? They'll always lobby against whatever they don't like,
but they would be nothing if these Payment Processors Companies didn't enable them.
I'm relieved Hyao is not affected too much, since LD not his main source of income and Itch is not his main platform.
But this development has very large impact, suppress free expression and discourage creativity.
Luckily Japan starts to push back, wish we can see more government step in.