You'd love this story from a law lecture I went to where the CTO of a $Big_pharma_corp came to speak. It was about privacy in biotech. The CTO said they lobby

You'd love this story from a law lecture I went to where the CTO of a $Big_pharma_corp came to speak. It was about privacy in biotech. The CTO said they lobby for high regulation in privacy specifically to stifle startups so they can get them cheaper. Generally politions work with the biggest industry players to craft regulation and it ends up like you described.