Why are custom games split by region now?

I am hearing that custom games are now split by region, so someone in North America can’t join an EU hosted game, is this true?

If this is true then why was this change made? It worked pretty well previously, where anyone could join games hosted in other regions. Surely this just adds to map waiting time as games now take longer to fill?

Why have Blizzard done this? Who at the top made these kinds of decisions? Reforged feels like a huge step backwards in WC3 functionality.

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Yes. Currently lobbies are separated by region.

It was made because the cross region support for BattleNet 2.0 is not ready yet. Pulldown UI for filtering by region is already in the game data files meaning that there is a good chance we will see the feature again soon.