If T212 are the only ones being restricted it means its userbase are buying the most Penny Stocks and making them look suspicious.
If most of the userbase complained and went to a Competitor to do the same actions, I am sure that they would need to restrict the Competitor Broker as well and the cycle repeats itself.
For people trying to Recommend Freetrade (usually online and in Discord), they do realise that once Freetrade start executing orders for Penny Stocks the regs will do the same to them, right?
The suspicious activity of Penny Stocks are due to people being on the biggest Broker with Free Commission buying en masse. It will end up as a Merry Go Round if the Userbase moves to different brokers. It ends up meaning that the Regs will retrict every Broker to stop the trades.
It is likely why people try and use more than 1 broker when it happens.