That may have been true once, but I don’t think it is true today. Scale effects and negotiation power means large companies are able to reach structurally lowe

That may have been true once, but I don’t think it is true today. Scale effects and negotiation power means large companies are able to reach structurally lower costs per unit than small ones, which creates an incentive to grow big. This also makes them slow to respond to change, so normally upstarts push them aside. But in the modern VC-backed ecosystem competitors are bought out without having a say in it. The upstart becomes part of the big player. Even if companies thread that needle and grow big, shareholders love mergers (for reasons I still don’t understand), so over time you get fewer and fewer big players. The regulatory capture is just icing on the cake, but I think you would get market concentration anyway, unless the government took a stronger stance against mergers and acquisitions.