An interesting article from Timmy, who makes clearly a point I’ve glimpsed muddily recently. Notice that the point stands, even if you happen to like regulation (I think there is far too much). Permit me to quote (fair use, I’m sure):
Big business positively delights in much regulation… Capitalism… is indeed all about making profit. Get the most out of whatever it is that you’re doing. It’s the market, the competition that it allows, which is what tempers this  profit gouging. You can’t charge what you like for a pint of beer because there’s another pub around the corner… What regulation does is favour both the incumbents in any activity and also large companies in anything at all. For what worries business is not whether they’re allowed to do something or not: but that other people will find a better way of doing it and thus compete. More regulation means that fewer upstarts can enter the market and any that do are hobbled by that regulation. The more regulation the more the current large companies can continue to be capitalist without having to worry about their practices being tempered by that market competition.
This affects things like, say, Wonga. If you’re certain that Wonga’s rates are too high, then you think they’re making too much profit. In which case, someone else should want to undercut them. What stops other people? Well, a variety of things, including the need to advertise in order to be known. But also, the vast mountains of regulation you’d need to go through to set up any such operation.