You have to be a bit of a liar to tell a story the right way. Too much truth confuses the facts. Too much honesty makes you sound insincere.
So what did the East German government do in response to the western government restricting the freedom for their citizens to buy violent media? They restricted the freedom for their citizens to make any violent media at all. As far as the rest of the world needed to know, East Germany's games were going to be the most peaceful and wholesome of all.