That was my first thought too. In this way, it serves a similar purpose to overly strict regulation, which is also something smaller companies have a much harder time dealing with than larger ones (and encouraging regulation of a specific area is a well known tactic of larger companies to raise the bar of entry to the market).

That's not to say all regulation is bad, just that like most things that have beneficial ways to be used, it can be abused by some to negative effect also.