"Compensation would be something that is owed to you because you lost something due to our fault. If you're simply unable to play, this is not a compensation issue. Outages do happen on the internet and we can't reasonably go around paying out every player, every time there's an internet hiccup."

When I buy something, then your "hickup" makes me lose it, and you do not return it, then I have paid for a service I did not get. When it happens more than once, to many people at once, then it is your fault.
This is not like it's one person or two...and the common thing they have is your game, so yes, it seems this one is on you.