Their justification on Twitter seems to be that they needed to get rid of their free tier. That makes some sense, but that doesn't really explain why they double the price for their lowest tier and increased the pricing on their other tiers as well. It's unfortunate that they're increasing their price without adding any extra value to the product.
And the way to get rid of the free tier is to switch it off for new customers, not to scare the crap out of all your existing customers.
Damage like this is hard to repair, it violates the trust between service provider and customer, in a b2b setting that is most unwise. B2c you might get away with it.
