What they described is exactly the case. Hence the controversy. Your company should be worried because these ToS changes have been applied retroactively. I agree with you that this is not legal but that is what's happening. Check Unity's own FAQ:
https://forum.unity.com/threads/unity-plan-pricing-and-packa...
Q: Are these fees going to apply to games that have been out for years already? If you met the threshold 2 years ago, you'll start owing for any installs monthly from January, no? (in theory). It says they'll use previous installs to determine threshold eligibility & then you'll start owing them for the new ones.
A: Yes, assuming the game is eligible and distributing the Unity Runtime then runtime fees will apply. We look at a game's lifetime installs to determine eligibility for the runtime fee. Then we bill the runtime fee based on all new installs that occur after January 1, 2024.
