It’s a fixed cost. The greater your resources the less it matters. So like every other fixed cost it makes things harder for all companies but it’s much easier for large companies to deal with. Like how GPDR is great for Google.

That just means that more businesses fail that could have otherwise succeeded.

You could say the same thing about minimum wage, safety and environmental regulations, child labor laws, workers taking weekends, etc.

At some point, as a society we set a minimum bar on what kind of successful businesses we want to employ people. What that minimum bar is can be debated, but "more businesses will fail" is not exactly a straightforward indicator of the value of a regulation.

Plus, certain types of labor laws, particularly those around leave, only apply to businesses above a certain size.