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added clarification.

Is it extortion to force users to accept new terms of service by threatening financial loss?

Why isn't forcing users to accept new Terms of Service by threatening financial loss considered extortion and therefore illegal?

Many software companies frequently update their Terms of Service or End User License Agreements.

However, users often invest financially in those products for many years, (monthly fees, digital content like Amazon Kindle books, or micro-transactions in games). And, they can lose all of their investments, easily, to changes that are unreasonable, (mainly because they diverge so much from the original terms of service and product features).

But, if you don't accept the new terms of service (largely incomprehensible in the first place) or breach them, you can be permanently banned or denied from using the software—thereby losing significant financial investments.