Match play: Both players are late for their tee time

The following situation: Both players arrive 2 minutes late for their start time. The starter draws both players' attention to this and informs them that they will both incur the penalty of losing the hole as a result of being late. The players did not agree with the starter's information and a referee was called.

The referee explained the situation to the players and the following decision was made by the referee:

As both players arrived at the teeing ground less than 5 minutes and no exceptional circumstances applied to either player, both players incur the penalty of losing the hole for the first hole.
The hole play begins on the second hole "all square". There is no penalty if you play the first hole to get to the tee of the second hole.

In the meantime, if you would like to know more about the rules of golf, please contact me directly at hans.kienesberger@golf.at.