Too many regulations is almost always a bad thing: numerous pieces of regulation rarely fit together seamlessly. It becomes easier to miss some obscure piece, or to encounter a contradiction, or to find a loophole. The cost of compliance also grows, and that disproportionately favors big established players.
Not true at all. Most of the harsher regulations only come into effect when the company hits a specific size. Examples from Australia (my country):
- Online shops that operate overseas, and import to Australia have to collect sales tax... but only if they make more than $75,000 from Australia per annum.
- Social media has to ban Australians under 16... but only if they make more than a billion per annum.
That’s very market and country specific. Spain makes more than 1k tweaks to it’s food regulations each year, which would kill lots of restaurants if they were to be in compliance.
The result is that everyone tries to make as much money as they can and build a “inspection fund”, because you’re guaranteed to get a fine if inspected.
This trend of countries declaring that everyone on the planet is under their jurisdiction if they mail something there (or respond to a network request) is bananas.
I disagree.
Imagine I ban health potions in my realm. I am running a Darwininistic experiment to make my people the most resilient people of the world and I want them to succeed through survival of the fittest. I tolerate non magical medicine but anything else will pay 1000% duties or be confiscated. A merchant comes by with a delivery of health potions to "Johnathan Man". The guards point to the "Survival of the ssssttttrrroooong" banner, while the merchant throws a fit saying she has a very powerful uncle that just happens to be a known warlord. The guards laugh, close the gates and go back inside for another pushup context. Meanwhile Johnathan and the merchant complain things about jurisdiction to no one in particular.
So if I'm understanding your analogy correctly, the guards can't really do anything, so the merchant and the buyer will be the ones going about their business.