I think the #blockwars folks may have indirectly caused this. There are people who file complaints against client apps that don’t build in blocklists against specific servers whose moderation policies they dislike.
I think that #Matrix / #Element competes with one or more Google-owned chat-type services. Since they gatekeep the overwhelming majority of Android users’ software installation, a good antitrust lawyer would be helpful. I’ll bet that faxing a bunch of documents to #USDOJ and various states would suddenly cause Google to decide that Element doesn’t violate their policies anyway.
(Someone said it was “Boomers at Google that don’t understand federation”, but first of all, I’m certain that most GOOG employees are far younger than you and I, and secondly, I’m sure someone at Google understands federation, though they obviously dislike not being in control. Google Talk was federated with #XMPP, while Google Plus was basically #Diaspora with federation stripped out.)
The cause for dropping the app was abusive content on the matrix.org flagship server itself, and it had already been moderated out of existence before Google told Element about it.
The app was suspended for 27 hours for no good reason at all, for no conspiratorial reason at all, and channels have been established for preventing it from happening again.