Regulation implies regulators, and regulators can become a bottleneck for power. They can demand bribes and favors in exchange for being allowed to operate and

Regulation implies regulators, and regulators can become a bottleneck for power. They can demand bribes and favors in exchange for being allowed to operate and they can use their power to selectively eliminate political opponents sources of power. Read "The Path to Power", LBJ biography. They describe this process plainly and how he continuously used his across his entire career in this way. Its very enlightening.