"Emulators are only OK when we specifically release them for our own hardware to run an extremely limited catalog that we hand pick and then charge the price of a brand new release for. Everyone else get fucked"
They've been suspected of selling downloaded ROMs several times, but the incident with the most evidence was when they released a port of a GBA collection of Medabots games on the switch eShop using a pirated version of the mGBA emulator. Like: there were strings of code matching from the original emulator.
The EULA of mGBA actually allows commercial use, but Nintendo didn't credit the emulator or the author, making it piracy.
It isn't eBay where anybody can sell anything. Nintendo curates and specifically authorizes all games sold on the platform, and they also license the right to emulate their legacy hardware in commercial releases on their platform.
They charged money to allow the sale of pirated software.
I thought this was a 3rd party company, not a Nintendo 1st party product. I can't remember the name, but it was a company that rereleases out of print games on physical cartridges.