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If they didn't have some control over their network, then things would run amuck. Couldn't do anything with cheaters, or people who do try to ruin things for others.
Even back with the PS2, and the free online play, you still were bound to the rules of the terms for use (legally I might add). People have sued over this many times before, but no one has ever successfully won, unless they were unfairly banned (meaning not guilty of what they were accused of).
Also, if it wasn't legally valid, why haven't they been challenged so far? Pretty much all of the suits I've seen have been thrown out.
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