Japan has an organization called JASRAC that makes it possible to license every song registered for commercial use for karaone and whatnot. It has its own problems but means you can have archived covers and monetize them.
The US and probably Europe has no such system, making getting licenses for all that harder. That's not only why all of Haato's western song covers were privated, but Fubuki's Scatman video too.
But if you want to believe it's all a conspiracy to shut Haato out of HoloEN, knock yourself out. This is 4chan, after all.