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Yes it does. Does the government have control over the fact that cars must have airbags and seatbelts?

And if that regulation disappeared overnight do you think everyone would stop selling cars with seatbelts?

It's now an established standard but uptake could have been slower and more piecemeal or even remained niche to this day.

I think at worst it's trivially arguable that many lives were saved by mandating it thus such regulations were a huge net good.

You are free to argue that this isn't but it's silly to argue that it's illegal because your theory is unsupportable.