With his arm held steady over Paul George's head, George just launched himself up into the completely stationary arm.

Any part of a body that gets to the space first should own that space. There should never be a requirement for any part of the body to get out of the way of an offensive player.

Paul George initiated the contact. There would have been no contact from Royce O'Neill had Paul George not launched himself into the stationary arm.

I honestly don't know, the NBA rule book might see it differently. But it seems strange to me.