This is is of course an area of concern. It is sometimes referred to as cognitive capture, akin to regulatory capture. It occurs when a regulatee so strongly paints a picture of how they feel the world should work, that a regulator fails to fulfill their duties, because their lens on the world has become so distorted in favor of the regulatee's perspective.

It often flows private industry ----> govt, with private industry cognitively capturing the government.

But it can just as easily go the other way. Afterall, in the west the media/journalist industry has historically been seen as the regulator of the government, the fourth estate.