I have no idea if any of this is true, but an argument you might hear is that companies that make some profit can capture the agencies to make a lot of profit,

I have no idea if any of this is true, but an argument you might hear is that companies that make some profit can capture the agencies to make a lot of profit, while companies that don't make any profit can't exist. So, you could defend absolute bans even while admitting they are excessive if you don't have faith in the system to keep a more nuanced policy stable.