Once it happens, as usual, the establishment begs/lobbies for political protection (think about jobs!) which will often be granted. But political favors can just at best slow their demise.
Reusable spacex rockets will be to the EU spatial industry what uber was to its taxis: turning them immediately irrelevant, and unsavageable as an industry.
A better example might be the high administrative costs of the US healthcare system. Obamacare couldn't cut all these jobs during a downturn, so they were preserved. But even now, for a lot of people it makes more sense to opt out of that craziness and just get healthcare abroad. This sector is ripe for disruption. Maybe not now, but in 10 years even more so.
The governments have just acted in the interest of the public, as usual.
as you said, "it broke the law": the law is made to benefit incumbants, not newcomers.
Electric cars? Nope, we've invested too much in ICE R&D and need to pay it back over another 100 years.
Solar? Nope, we promised the private coal plants decades of profits.
Public Healthcare (In the USA)? Nope, waaaaaay too many billions being made on insurance.
etc. etc.
Which is why we need to ignore what the establishment things and just do our own thing whenever possible, or at least support anyone trying to go clean slate.