Well that's because it's the trade off for new regulation; the bar of entry will be raised ever so slightly, and a small percentage of struggling/hobby companies will not be able to compete. Eventually with enough regulation the regulated industry becomes effectively an oligopoly. I mean this bill is being pushed in the home state of Facebook, Apple, and other tech giants where they donate the most money. This is not in spite of them but because of them that a bill like this is being pushed through, and I bet if you checked up on who's donated to 5rights or the bills authors you'd see people bought with big tech money
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtm...