Regardless of the rules (but respecting them) thats rubbish road skills by both parties.
If I am in the Mog I would have paid a darn site more attention before pulling out onto that type of road with all those people around. You don't want to go squishing any people.
If I am the Pug and see that ahead of me I lift and scan for risk like a bandit.
Both drivers should have read that situation.
Mind you one was in an Audi.