It is if said superiors have broken the law and precipitated an incident that could lead to interstellar war. Picard did exactly what he was supposed to in that situation. It's not his fault that Pressman (and others at Starfleet) orchestrated a conspiracy to smuggle illegal technology back to Federation space, but he would have been to blame had he allowed them to get away with it. I don't see that he did. He ordered a message sent to the Romulans that their government would be contacted about the incident, but nothing else was revealed to them onscreen. Makes sense to me and explains why Picard took the actions he did.