Just another way regulation fails to do what is supposed to, while its downsides (diminished competition, deterring startups and supporting incumbents) still apply.
This is why blindly relying on regulation and ignoring its trade offs is just foolish.
But they do exist. Their downsides still apply. They will keep intimidating and burdening the honest players and deterring prospective startups while completely failing to stop bad players.
They will even encourage corruption: obey heavy regulations and controls or simply pay a tribute to the ruler.
FTA: “ According to numbers published by the environment and urbanisation ministry in 2018, more than half of the buildings in Turkey – equivalent to almost 13m buildings – violate construction and safety regulations.”