Am I in the wrong ?

My mil goes against my parenting and always bends the rules at her house with the excuse 'I'm grandma' I let her get away with a few small things like some treats and stuff but when she invites her family over I've told her that their not to hold my daughter as she gets very scared (she's going through a stage at the moment) she always says yes dear I won't let anyone hold her (her family don't speak or understand English so I can't communicate with them)
Anyway, I still suck it up and sit in a room full of people speaking a different language for hours! I can't even begin to explain how frustrating that is enough and how lonely it makes me feel. But anyway, she let them pass around my daughter like a fucking football my daughter started to panic and cried so I snatched her away and went to a quiet room. I chose not to embarrass my mil so when he guests left I pulled her up as to why she let them hold her she told me oh don't worry their very experienced lady's who all have children! UGHHH THAT WASNT THE POINT. Next family gathering we had a few weeks later she did it again so I grabbed my daughter and went home and this time told her I will not be bringing my daughter to ANY of her family gatherings for her to be passed around like a toy and spoken to in a language she cannot understand. My MIL lost it and said that if I don't bring my child over there when family are over then I should never speak to her again so I simply said ok I won't, if you want to see your grandchild you know where I am goodbye. 
It's been over a week she hasn't spoken lol to be honest I'm loving it but she tells my SIL that I'm out of line? Am I really ?