I don't understand the thinking at businesses that do this. They're obviously not going to keep this guy's business, their new terms for cancellation may or may not be enforceable where he is, they're risking getting hit with chargebacks if they try to force the issue by charging the card anyway... and they're fighting him in full view of the Internet.

Surely they understand that this is going to do the rounds on social media and tech forums, and that a significant proportion of their entire global market is likely to have heard about the dispute within the next few days? And that looking both incompetent and untrustworthy, as they obviously do here, is going to risk both losing existing customers and deterring potential new ones?