Yes, you are describing the dynamic I am talking about. My point about "deregulation" was in the US context where there is a strain of people who reflexively infer that deregulation must be good, from a general idea that regulations are bad. Regulations most certainly can be bad (as is the one you're describing), but this does not imply that blindly "removing regulations" is good! Because what tends to happen is that the type of regulation you are describing (registration/compliance/etc creating a fixed costs that are hard on small businesses but easy for large businesses) never gets removed. Rather what does get removed is regulations that are inconvenient to the large businesses - things like right of withdrawal [0], liability, anticompetitive restrictions on large businesses who have now become unavoidable parts of an uncompetitive market [1], etc.

[0] IIUC "right of withdrawal", at least. It's an EU thing where you have a legal right to return products after a purchase, right? Whereas in the US it operates more on custom, customer satisfaction, and marketing.

[1] eg if artists have to start selling through Amazon (etc) rather than shipping direct