I've got mixed feelings with regards to Israel and Palestine (in Facebook parlance, "It's complicated"), but this action seems just as politically motivated as the actions it seeks to ban, only on the other side of the spectrum.
Well of course it is, its clearly not being done to uphold democractic process. The issue here is that it is still vague because the boycott is not of Israeli goods but rather goods from the occupied territories which is a subsection of Israeli goods and thereby wouldn't break the law.
Clickbaity abbreviation of title dodges the fact that this is strictly about spending public funds.
People and businesses spending their own money are still free to boycott any supply chain they wish.