Regulation is the worst solution to any of this. Let the free market figure it out and you'll find enough competition if there really is enough demand.
The "free market" will always, always end up with large fish eating up the small fish and extracting rents once the competition is eliminated and the startup costs too high for startups to enter the market.
> The "free market" will always, always end up with large fish eating up the small fish
I still think this has much more to do with market interventions enabling 'artificially' large economies of scale. Infrastructure, police, subsidies/grants, IP protections--all played and continue to play a massive role in shaping markets today.
The number of successful new companies contradicts that statement.
Regulation, on the other hand, does tend to lead to rent seeking behavior as incumbents use those laws to their advantage and forcibly block new companies.
It’s much easier to overcome high costs than bad laws.
> The number of successful new companies contradicts that statement.
And that's only because of current regulations and anti-competition laws. Turns out "free market" is only "free" when the giants are asked to behave and punished for bad behaviours.
With web applications, the right to privacy, not to deal with unwanted and / or forced updates or ToS changes, to retain the rights on our data and access it etc.