They threatened the supply chain. Would they do that to a normal developer? If you're a developer and one of your apps is found to violate an app store rule does Apple remove not only that app but also all your developer credentials and licenses? I imagine Apple just removes that app do they not?
I was fortunate enough to watch the Zoom of the hearing - the Apple lawyer claimed that in cases of breach, it is normal for Apple to disable all related developer accounts to limit the offender's ability to 'hide' behind alternate accounts.
In this case, the two accounts in question (the one for Fortnite and the one for Unreal engine), while on paper are separate entities, were paid for by the same person, using the same credit card number - so that was Apple's justification for removing both.
As the order shows, the judge still felt it was overreach.
Most developers just get that app removed (unless they egregiously operated in bad faith). If they then sued Apple, you bet they would get their account suspended in the mean-time too.