Earlier quoted context omitted.
I'm not the OP, but I do work for Knife Depot. Google did not ask us to stop advertising for one category of product. They asked us to remove those products from our site, and if we didn't, we could not advertise for ANYTHING via AdWords, including kitchen knives, cutting boards, pocket knives, etc.
Wow. Thanks for the clarification -- I'm sorry I misunderstood. If this is true, it's completely crazy. How does Google think they can tell people what products to sell on their own shops?? Then I would completely agree with what the OP did, of course. In fact, there really was no other way.
“I am still waiting on an answer to my reply where I asked for a universal enforcement of the policy OR we allow knife depot back online. I replied and said, I refuse to tell knife-depot they need to remove a product category that 7 other competitors are advertising & selling the same products.” I then named each domain, called out the double standard, and requested that they state the clear differences that allows these competitors to serve & knife depot to be suspended. Still waiting on this reply.“
That email was sent over a month ago.