> Why do these decisions always have to be black and white.

This decision seems to be very different than that. Those companies were asked to "provide a local contact, grievance handler and person responsible for self-regulation", otherwise be blocked.

It really isn't surprising that someone asks them to follow the laws of their country, and if the companies are ignoring them, block them since they're unable to follow the local laws.

The companies really forced Nepal's hand here by repeatedly ignoring their requests.