I think that is the critical point.
Big corporations are good at lobbying. They shape policy. Politicians do not only like big corporations, they allow them a lot of influence, so they can shape policy to advantage themselves against smaller competitors.
Exactly. one of the defining moments for my political views was hearing the CEO of a big pub company explaining that this was why they could keep expanding as smaller competitors gave up because of the administrative burden.
Both governments and big business live complex rules.
[only]https://www.wsj.com/articles/regulation-is-good-for-goldman-...
The CEO I heard was Ted Tuppen, who ran Enterprise Inns, a big British pub company.
Shows what a wide range of things this is true for!
1. They say they are opposed to regulations publicly, but indicate they will "compromise" privately. 2. They lobby against some regulations and against others.
Here is an example of a business openly asking for more regulation: https://www.bbc.com/news/technology-51518773 I actually agree with some of his arguments, but I do not think his motives are exactly pure.
A dying breed these days, unfortunately.
It is certainly glossed over by "market fundamentalist" types who tend to think let the market do its work is magic pixie dust.