Was their server located in a country where sharing files is illegal? Since the web shares files and bittorrent is just another way to share files surely if sharing files were illegal in a given country then connecting to the internet at all would be illegal in that country.
Since bittorrent is a peer to peer service it is just like the telephone and can be used for both legal and illegal purposes. Was the country their servers were in one where the phone companies are prosecuted each time someone uses their phone for criminal purposes?
Or was this another case of the movie studios not wanting the difficulty of trying to find those breaching their copyright in order to take individual civil actions against each of them and instead trying to pressure a government toward making the internet illegal so as to save themselves the expense of either trying to find and prosecute those who have breached their copyright or (better) spending money on trying to find a technological solution to their problem.
While the internet is world wide and there are countries where copyright either doesn’t exist or is a civil matter then a technological solution is the only approach to their problem that has even the slightest chance of working.