The dust will never settle because once people try to regulate they can basically move software engineering in its whole somewhere else. Something great about being active in multiple places is the fact that these companies have leverage. There's not just a cost advantage to having amazon in luxembourg, just employ a few thousands (10 000 jobs are linked to amazon in luxembourg) and you can block votes in europe (because of veto power). 10K jobs is nothing for amazon but is 2% of all jobs in luxembourg.

Same way amazon being big in india isn't just great because of the vast talent pool and 'low' costs in India (even if many if most indian programmers are subpar, they got over a billion people), they basically ensure that the government in India can never turn against Amazon, because these jobs are concentrated in a specific region and India isn't a unified state. Amazon can try many getting into many different things in India without having the risk associated some small foreign company breaking into India would have.