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nickpptoday at 7:56 AM2 repliesview on HN

And it bears repeating: regulation (even well meaning regulation) is not free and it always favors incumbents and hinders startups.


Replies

dns_snektoday at 10:05 AM

That's not true. EU regulations like the AI Act and Digital Services Act have different obligations and requirements for large and small businesses and that amount can't be zero because being a small business doesn't give you a free pass to cause damage to society.

I'd be curious to hear about specific examples of AI regulation that affect small businesses without a good reason.

intendedtoday at 8:56 AM

Yes.

This is always going to be the case, because regulation is typically a form of friction.

It is the shape of regulation that matters, and ideology on either side of the divide is religion.

Good regulation and regulators would punish anti competitive behavior, but this will also act as a drag on firms, while preventing firms from reaching certain sizes and potential economies of scale.

The point is that regulation deserves to be understood and crafted well.

Those economies of scale are meaningless to consumers if it means a single firm squeezes everyone in the supply chain and captures the benefit for itself.

This is also a specific weakness in American conversations. The divide between free markets, competition, and regulation are ideological.

If you want good markets you need good regulation and incentive structuring.