The same effect happens with every industry the government massively interferes with. For example, education, and real estate.
Look what happens in industries that experience very low levels of government interference, like software. Costs trend to zero.
1. is costly
2. encumbers competition which increases pricing power
In any case, if the government is intervening to reduce pricing power, it clearly is failing spectacularly at that.
Weirdly, the government accused Microsoft of having a monopoly because it gave Explorer away for free. How is that pricing power?
The same effect happens with every industry the government massively interferes with. For example, education, and real estate.
Look what happens in industries that experience very low levels of government interference, like software. Costs trend to zero.