Earlier quoted context omitted.
My ISP is capable of determining the services it offers to me, its customer. Your ISP is capable of determining the services it offers to you, its customer. No ISP is capable of mandating behavior from third parties who haven't chosen to engage in an economic exchange with it, meaning that no ISP is capable of regulation.
My ISP is capable of denying services to me, its customer, based on principle (e.g. it conflicts with their business model). Ergo, they regulate what I can/cannot do. Without government regulation to say "bad ISP, bad", they can regulate my ability to access services and charge me more to slowly peel back that regulation. In case you are still confused, here's the definition of 'regulation': > to control or direct by…
Or maybe there's more to the word, particularly in context, than the shortest dictionary definition you were able to find.