The worst part is that laws like these add to the regulatory burden faced by small internet startups to get off the ground. The trickier the legal environment and the amount of rules that a company has to abide by to do business online, the harder it will be to do business and the fewer startups will succeed.

The internet giants, Microsoft, Google, Facebook, et al. might even welcome additional rules like this. They provide additional barriers to entry and provide them more protection against new competitors.

I'd reckon that it's in large part because the internet hasn't had many rules like this that the cycles of innovation online have been so fast.