This seems to be a bit of a misleading headline.
In the current climate limiting someone's use of AI might be expected to be about restricting access or restricting what someone can do with it, but the story here ostensibly seems to be about capacity constraints, not any limitation on what models or capabilities Google is giving Meta access to.
These kind of limits happen all the time for big clients.
Cloud services like to present the illusion of an infinite amount of compute available at a fixed price per unit, but the reality is if you try to use too much of any service you'll find you have a quota and requests to increase it will fall on deaf ears if the provider doesn't have more of that resource.
Too much of my working life has been spent shoehorning services into less space/compute/ram/spindles or migrations to other data centers to solve such issues.
Given Meta’s current AI situation though, I wouldn’t be surprised if they were trying to do distillation and the capacity story is a cover