Because citizens accept that you need a government license to... do virtually anything of significance. And unlike laws passed by legislative bodies, nobody ever looks at these closely and checks what's in there, and since onerous license conditions are not considered rights violations, basically anything can be there unless somebody gets pissed enough to go to the court and lucky enough get a court ruling on a specific thing. Since most people don't have time/money to do this while trying to start a business, not surprising what happens there.