Perhaps because laws and regulation are part of the market. And unfortunately even in democracies, small but vocal minorities have proven to be very able to bend the laws i their favor. I bet there is no democratic majority to support DMCA and indefinite copyright. Still there is no way to turn back these laws, as a few well organized people with a lot of financial interests are for these laws, a and a large part of the general population is (I suspect) somewhat against but mostly indifferent. For most people copyright reform is just one of the many things they would applaud, but not really fight for.

Same with climate issues, tobacco industry, opioid crisis... A small, vocal, well organized minority can have it their way and the rest of us stand by and suffer.

I would love to hear of a better way, but as it stands, you cannot see this mechanism as a failure of politics alone, and not market, as it are market forces that push the above mentioned minorities to influence the law.