It's FD's show however, and none of their rules were broken. They do NOT approve of the actions, they did make that clear, but since no rules were broken, they can't actually step in and do anything about it. They are kind of stuck in this situation, rules apply to them that people simply keep ignoring or don't know about, which sucks and they don't like it but they are stuck with it. That said, it's really not their place to police private groups either, I'm a hardass, I've got a habit of ignoring things I KNOW I should do and doing what I prefer to do. Then again, I ran a league, not an entire game, so it's a little different situation, I was final authority and the rules were subject to change whenever the hell I felt like it, which most of my players liked as I'm not forgiving of griefers, exploiters, or hack users, at all, no warnings, no second chances, you do it, you get the boot, end of story. Doesn't go over as well for a game company in the UK as for a private citizen in the US...EU laws, they do make things interesting at times don't they?
This is the exact problem, they can't step in, because there a lot of problems that crop of if they do, people begin reporting others that have done something? cool, fine, maybe they could add an ability to remove their private group privileges? I don't know.
But yeah it comes down to you can't tell a person what to do with 'their' product, they bought a game they should be able to have fun 'their' way, however online gaming becomes one big murky grey area on that point, with as you mention laws and similar, and griefing is something which some people throw around a lot, how it is defined, was it intended as griefing, even when it doesn't actually happen, and people end up falsely accused, tracking suspected griefers and similar would be a draw on dev time amongst other things, and rarely is practical, because new just pop up. And since griefing usually is so closely tied with pvp, if you want pvp, then you have to allow certain things, which can be abused to grief people. It is a problem that exists many places unfortunately, but hopefully they will add a consequence system over time, and those at least in my experience will change stuff for the better in many ways.
But yeah, I totally agree that griefers 'should' get a swift kick in the rear and banned from online modes and such, be it shadowban or similar. Problem of course lies in that its been proven that if you create such a system, there are another type of griefers that will abuse those systems, and individual admin oversight is enormously time consuming and impractical to juggle with

So yeah, if people would just by default give others online a tiny measure of respect, and maybe put in a bit of effort to actually 'be' something in the game, but yeah..
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It does not prevent it either - something people should have kept in mind.
Hence why I decided to opt out of the Mobius Group, so I did not fall in to that bad mentality of letting my guard down because I'm in the Mobius Group.
Absolutely nothing prevents one player from killing another player in any Open or Private group - no matter how many times you want to call yourself a PvE Group.
Perhaps if people kept that in mind, they would not be so annoyed when they die to PvP.
Good hit on core of the problem.
Game gives people freedom to do what they want.
People use that freedom to harass and annoy other people, and generally be immature and self-centered griefers.
Should games then restrict freedom, and also affect the majority that do not misuse the freedom in the way a minority does? since the minority affects the majority negatively and holds power over them?
As for being upset about death, in my experience people aren't upset when they know a reason for their death, be it they made a mistake, they went into a location that was blocked by a faction, warned off and didn't leave, and got blown up, what have you. That really doesn't upset people that much, the main core of the problem is the, get interdicted randomly where you are quite weak, and your attacker is clearly prepared for blowing you up, does so, without any demands, any statements, in short, no interaction, just boom dead, and then presumably is sitting laughing at you behind their monitor, or maybe even puts a video online of what they do, getting their friends together and laughing at you.
This happens, there's both twitch and youtube video's about it happening, where you hear their reasoning, basically being bored or similar, you hear the laughter, yeah, in my world if you behave like that in public RL, its not going to end with the griefer laughing...and that's why the best solution in my mind, is consequences, there's consequences in RL so such behaviour is limited, there should be consequences in game, so that behaviour is limited, consequences that hit everyone, but are part of the game.
Of course yes, I know some people want to not have consequences inside their game, but want to basically sit in a power position 100% of the time....to which yeah I don't know what the answer is.