It makes the law is trying to avoid their being a distinction between code that lives on hardware you have in your possession and code that lives on a company server.
For instance you might be indignant that you can't look at the code on your proprietary device, but you aren't indignant that you can't look at the code that runs Google's search engine.
So without laws to "equal the playing field" in a sense - server side service companies get a distinct advantage as they're able to have trade secrets - while companies that distribute code are kinda screwed.
Even with the current legal environment companies STILL try to push processing into their own server controlled space (see Siri, Cortana, most cloud services)