In general, you are right (excluding the usage of word "Nazi"): private entity can deny services to other entity. However, in legal practice there are exception

In general, you are right (excluding the usage of word "Nazi"): private entity can deny services to other entity. However, in legal practice there are exceptions to to the rule, e.g. when the entity which denies is a monopoly (even locally defined), or services are too essential. I'm not in position to decide if it applies to the situation described, but worth keeping in mind that there are limits.