Regulation, in theory, safeguards markets from chaos and exploitation. In practice, it often morphs into a labyrinthine compliance regime that entrenches industry incumbents. The very policies designed to ensure fairness frequently ossify into bureaucratic armour, favouring those with deep legal teams and compliance budgets. What begins as a protective measure evolves into a gatekeeping mechanism, making market entry prohibitively complex for challengers and consolidating power among the few already seated at the table.

For industry giants, regulatory complexity isn’t a burden—it’s a strategic asset. Compliance becomes less about adherence to principle and more about weaponising red tape. Every new mandate spawns internal policies, committees, and audits that smaller competitors can’t afford to replicate. These structures create resourcing moats, where survival depends less on innovation and more on administrative endurance. In this way, regulation—intended to curb monopolistic power—often sustains it through the quiet tyranny of procedural inertia.