Clearly if this was in Australia, the driver would be breaking the law by deliberately driving too close to the rider and risking the lives of the riders for no good reason. Where the rider rode has no impact on the driversability to maintain the required distance and where the rider is riding is within the law.
That driver has absolutely no excuse, there is no justification. Its the driver just being lazy and not wanting to pass safely. This is exactly the reason to justify riding two abreast and making drivers overtake rather than squeeze them out like in the photo.

