Yeah, they're clearly not checking the ethnicities of everyone using their service, but this still seems rather harsh, and with no appeals process too?
When people violate actual law, we know which specific sentence in the written law was violated. We have a chance to defend ourselves. We have (supposedly) impartial judges and juries to help determine the truth.
Tech companies are building parallel institutions for judgment and execution, but building it for themselves and they have no plans to let their users have any say or transparency. It's a digital version of "rule of men" rather than "rule of law" -- "you're condemned because I, the King, say so."
This will continue until external powers (regulation) force the quasi-digital-fiefdoms to open up. Hemming and hawing about "gee, this is kinda harsh" won't have an effect on them.