Earlier quoted context omitted.
It is because regulators don't want a monopoly to be formed around an emerging technology. Sure cloud streaming is not big at the moment but it could literally be the default way to play games in 20 years. Heck Microsoft themselves point this out to their investors. Google's monopoly on search and online advertising today could have been easily prevented 20 years ago by some regulations.
> it could literally be the default way to play games in 20 years. No it couldn't. Its fundamentally inferior to local hardware and no amount of wishful thinking will change the laws of physics.
Civilization, SimCity, zoo tycoon, Paradox Grand strategy games, etc... Would all be fine to play on a streaming platform