An illustration of this point is that in the UK the regulations for electricians, and building contractors in general, actually promotes small companies. They're usually either a two-man team or a father-son op. In fact the largest I ever saw was a three man team, which was a two-man team with one of their sons.
The point is, is that the regulations actually keep the income evenly disbursed. Essentially everyone is earning between £60,000 and £100,000 a year depending on what you do and how well you do it. However, when you work for a company (companies seem to exclusively do large businesses like factories and the few that don't have very bad reps) you earn much less, some get paid between £40,000 and £60,000. You, of course, get you tools paid for but they're a one time purchase, I mean our most expensive piece of equipment was a £1,000 tester and it has a 10 year warranty on it, so there is literally no incentive to go with one of those companies.
The companies actually run a scam, they hire people who aren't certified electricians, which is perfectly acceptable and legal. However they'll never train them to be certified, they just use already-certified electricians to certify everyone's work is done correctly. Again this is unfair on the certified electricians because if anyone screws up and he doesn't catch it, he's liable and that can include a prison sentence if someone dies from shoddy work.
My point is that regulation can be used in many ways. Big business takes over the regulators, but when used effectively a regulator can actually promote smaller business and stop economic pyramid schemes forming (AKA big business, people work for minimum wage so that the people at the top can earn over a million a year).
The fact that software isn't regulated is a good thing right now. There's lots of competition and there's self-regulation going on. There's lots of virus' out there, but if you stick to the sites certified by Microsoft and don't go on any sites that google suggests may be harmful to your computer, then you're largely to be fine. However, if companies like Google and Microsoft weren't providing some form of assistance to users, then I believe the software industry would need regulation, which would probably kill millions of blogs and social websites.