As i said, i am against reporting system in the custom servers side of things.This is exactly the same situation and we have arrived at the crux of the point. While laws ebb and flow like the morning tide, if I were a betting man I would wager that these companies are going to lose "platform" immunity for their actions in the US as there is established law precedent for the idea of "companies being held liable for information presented by 3rd party actors" particularly in US copyright law. If YouTube hosts copyrighted material such as a full movie, and they do not swiftly take it down, YouTube as a company will be sued for damages, not the individual who posted it to his channel. Therefore, in my own opinion (which is not to be taken as official legal counsel or advice in any manner) the individuals who seek to hold these social media services as "publishers" and strip them of their "platform" immunities will be successful in their legal quest.
Therefore, it would seem wise to me if I was in the same position of Taleworlds, to offer users the option of self moderationinstead of taking it upon themselves to more actively moderate(mute button, avoid this user in future games option)lest they be held accountable for all speech of their users in the future, opening up an undesirable can of legal trouble.(banning people with moderators through report function)
But having official servers changes this, mostly for the queue. Where there isn't a community to moderate the chat. I believe the community is more then able to deal with people who act badly.
CS:GO has also this system in place except that the devs just don't seem to care about such reports because it is an impossible task to monitor all of the reports. But the system exists nonetheless.
If laws were to be broken, i'm sure Taleworlds would have looked into this during the design of the reporting system. But as of now companies have the power to do whatever they want almost on their platform.





