The existence of private business is default allow. That objection makes it sound like the author is arguing that all business should have to get government per

The existence of private business is default allow. That objection makes it sound like the author is arguing that all business should have to get government permission to exist. (Which, they kinda do if they want to get incorporated, but that's a low bar.) The author is making a different argument: this particular business is working in a market with incentives so perverse that they are more likely to be harmful than not. If we deem these kind of services necessary, then let's make it a government program so that the incentives are correctly aligned.