Flags do get reviewed by moderators and are not anonymous there. It is just a way for normal users to report content and it does hide stuff by default, but moderators can always reverse those decisions. Law or constitution of your country only applies in a limited way here, Jolla makes the rules for the forum and you either follow it or you go elsewhere. This is not a forum to voice political views, your preference in movies or whatever, so you don’t need to be allowed to voice any offtopic concern you have, because of “freedom of speech”. Instead you are allowed to report bugs, voice your opinions about design changes, add feedback to bug reports, show off your apps, request new features, etc. But all of that has to be respectful towards the developers and other users. Nobody got time to waste on people just complaining and flaming because they got nothing better to do.
Flagging is not a “one user can remove all your messages”. They can hide it, until mods notice they are abusing that power. But that’s it. Flagging just reports a post and hides it, so that spam gets hidden immediately until a mod can take action. You all are blowing that way out of proportion with your censorship and free speech arguments, that simply don’t apply to a forum. And a few people, that complained about censorship, have shown an excessively inappropriate and rude tone in their posts in other parts of the forum. I don’t really care that they feel like their posts are being reported excessively, because their posts would be removed by a moderator anyway.
Anyway, to answer your question: Jolla makes the rules. The community can help Jolla uphold the rules by reporting content. Reported content gets hidden by default to give moderators a bit more time to react to sensitive content. Mods still have the last say in what gets removed. If people are abusing those systems, they might get banned from the forum.

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