Earlier quoted context omitted.
Then companies will make everything a service. You need to make a downside for dearing that.
In theory, markets should regulate and competitors should be able to rise and provide products over never ending services and be successful. That doesn't seem to happen though. Is it because service designs expose real business costs of continued investment in R&D sort of deal, is it because such reliable products are bad for business (you provide something so good, reliable, and cheap you kill your own revenue strea…
So the question is just, is this a market failure in the sense that the market outcome is undesirable to society such that there's a strong case for regulation? Or is it a market success in that most people are getting what they prefer (cheaper products)?
If we were to get regulation passed on this, and prices for digital products and services were to rise, would people broadly cheer or jeer us? I think it's pretty clear that most people would be unhappy with this, at least above some level of price increase (which may be zero).
So to me the question is (like with all regulation) whether this can be regulated without increasing costs to people beyond the value of the regulation to society. Maybe so, but unfortunately I'm pretty skeptical that's the case.