Counterpoint: life in communist countries is not known for being "not miserable".
Consumer software and Internet are probably the least regulated areas of engineering today, that's the problem. Compare that to aerospace, construction, etc. Regulation though is not part of the free market capitalism paradigm, it's the prerogative of democracy.
Who told you that? People like to simplify views and say that people are "anti-regulation", but really people are anti-poorly-thought-out-regulation. What famous capitalist do you know that argued theft for example should be unregulated?
The effect is that small competitors are kept out. They can't afford legal departments and legions of developers to match the regulatory requirements.
For now, the Internet is relatively unregulated, which allows alternative media and platforms to emerge. This is a good thing, imagine having just YouTube and Facebook forever.
I understand but under proper democracies regulations are something the society should benefit from in the first place.