Incumbents love regulation, because they are much better positioned to comply with it than any upstarts or new challengers. So, when a company like Anthropic gets a decent marketshare, their priority shifts to lobbying for regulation to limit competition.

It is a form of regulatory capture.

That's what I meant, but as the root comment implied, regulation is needed, so the solution is not laissez-faire.

These companies are not going to regulate themselves. Capitalism is going to drive them to relentlessly compete for growth at all costs, a lot of which would be imposed on society. At least they are honest that regulation is needed, unlike Big Tobacco.