When intentional, this is Regulatory Capture. Per https://www.investopedia.com/terms/r/regulatory-capture.asp :
> Regulation inherently tends to raise the cost of entry into a regulated market because new entrants have to bear not just the costs of entering the market but also of complying with the regulations. Oftentimes regulations explicitly impose barriers to entry, such as licenses, permits, and certificates of need, without which one may not legally operate in a market or industry. Incumbent firms may even receive legacy consideration by regulators, meaning that only new entrants are subject to certain regulations.
A system with no regulation can be equally bad for consumers, though; there's a fine line between too little and too much regulation. The devil, as always, is in the details.