@pixelfed huh, looks like illegal anti-competitive activity to me, seems that they are attempting to "hinder other businesses from entering the market", and acting to "maintain or acquire a dominant position by excluding competitors or preventing new entry". Maybe qualifies as "refusal to deal", though not sure.
https://www.ftc.gov/enforcement/anticompetitive-practices
Related, see how it went when Twitter did similar: https://www.commondreams.org/news/2022/12/18/ftc-urged-take-close-look-musks-twitter-bans-links-competitors