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It seems they did originally block them before reverting that decision: https://www.ghacks.net/2019/12/03/mozilla-removes-all-avast-... Would be interested to hear their justification.

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The extensions were temporarily removed from AMO, but blocklisting was not enacted, so around 1 million existing installations have remained operational while Mozilla was waiting for weeks for Avast to submit an update.

The initial update for one extension was also approved despite the extension not respecting a declined consent and resuming data collection after browser restart [1].

[1] https://bugzilla.mozilla.org/show_bug.cgi?id=1600600

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