More regulation actually increases the barrier of entry to make it even harder for new companies. Well financed established companies are well able to comply. There is a reason that FB always begs for regulation.
Think about a regulation being passed that says if you allow user generated content, you must have a system in place to prevent copyright infringement. Would a startup be able to design such a system? It would give FB and Google an advantage.
Much more than any company that often are headed by literal psychopaths. At least I can vote for my representatives.
And considering a lot of regulation that is passing in the EU I think is at the very least a good step in the right direction, I would say its going pretty well.
There is a problem with the lack of enforcement, but the regulation itself is sane.