[piva00]

I prefer a system of rule of law that covers the spirit of the law rather than the letter.

I do not like the idea that law can become a game of finding loopholes that go against the spirit of it, it's whack-a-mole that costs the State a lot to keep patching. I much rather have the system most of the EU has where subjectivity can play into decisions since some loopholes can be clever enough to work around terminology, jargon, and non-specificities to skirt around what's written while being opposed to the intent of the rule.

Companies can still contest, and bring forth cases to be reviewed to check if those solutions comply with the law, their lack of cooperation is a choice to drive a wedge between the citizenry and the regulations by non-complying and crying foul to the public to gather sympathy. That's an active choice, the companies could work with regulatory bodies to cooperate, and find a solution (I work at a company who did that for DSA) but most would much rather give a bad rap to regulations to turn the public against it.

[genericone]

"Why don't you just read my mind and do what I wanted you to do in the first place?"

Rule by law rather than rule of law?

[piva00]

What's a better system that allows patching loopholes of the letter without requiring extensive bureaucracy and potential gridlock in legislature?

There's no mind reading, most of EU's fines only happen after a pattern of non-compliance, complain as much as you want about EU's bureaucracy but it's quite cooperative if you want to figure out a solution. I prefer this system than one where the written laws are worth nothing since well paid corporate lawyers can figure a way out, or hell, they might even be paid to write the laws themselves as it happens in the US.