Technology companies know this and have traditionally avoided regulations, relying instead on their own creativity and independence. The answer may be found in the industry's attempts to gain influence inside the beltway. Congress's crusade to regulate technology has forced companies to open Washington offices, employ lobbyists, and hire an arsenal of government-affairs officers more experienced on Capitol Hill than in Silicon Valley. While these efforts do help prevent new regulations, they also backfire. Hired political advocates are exactly that.
Legislators quickly respond in an effort to ingratiate themselves with the industry's deep pockets.
And technology executives, rightfully more preoccupied with profits than politics, are letting this process run free. By doing so, they are empowering the corporate welfare cycle that traps industries in Washington's web. Money is spent. Bills are passed. Establishment politics reign, replacing industry innovation with government regulation.