Corporations also have the means and the connections to lobby the state, which ensures the regulations are more to their liking. All helping entrench the corporation.
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.
[0]https://about.facebook.com/regulations/