Technically yes, there is a supposed to be an industry wide, albeit voluntary, procedure and protocol in place that usually it revolves around something called "DMCA take-down request". For example a musician finding their music being distributed without permission can send in a take down request on said files. The Host/ISP is then obliged to remove the content and it's up to the distributed to then prove they had permission in order to get the files back up.
In this instance, because it was something to do with 'terrorism' it seems someone at Burst panicked and shut the server down without notice. They do generally have the authority to do that if it's in their T&C, but it's usually invoked where their client was doing something that was putting the server itself at risk (the current legislation doesn't hold host/ISP/service providers liable for the *contents* of their services - it's stops them being arbitrarily sued). Because this was a client of a client, it's certainly questionable but most certainly not the right way to have gone about solving this - technically all they had to do was delete the offending blogs and folder contents and jobs done.
Initially the iNet was full of speculation about this being another heavy handed offensive by the Record/Movie industry, although it wasn't, it does kind of set a precedent where ISPs may just shut down services at the behest of 'official' communications, which is obviously somewhat troubling; it's not that far a stretch of the imagination to think of companies like Activision/EA sending out take down requests on mod sites because they're 'interfering' with revenue generation from Down loadable Content (DLC).
