Regulatory capture doesn't necessarily mean the regulated get to decide what the regulators do in precise steps. It can simply mean they support and exist within a regulatory regime that greatly benefits the regulated.
In fact, you generally don't want them directly telling the regulators what to do. Instead, the regulators make complex, costly rules that only large establishment players can follow. The regulators look like they're doing their job; the regulated enjoy higher margins and protection from disruption.
Regulatory capture doesn't necessarily mean the regulated get to decide what the regulators do in precise steps. It can simply mean they support and exist within a regulatory regime that greatly benefits the regulated.
In fact, you generally don't want them directly telling the regulators what to do. Instead, the regulators make complex, costly rules that only large establishment players can follow. The regulators look like they're doing their job; the regulated enjoy higher margins and protection from disruption.