Regulators also have incentives. In particular the rise of crony-capitalism in the US means that regulations end up becoming a cudgel to stifle competition as a form of rent-seeking from the government.

It's the baptist and bootlegger problem: https://en.wikipedia.org/wiki/Bootleggers_and_Baptists

> "Such a coalition makes it easier for politicians to favor both groups. ... [T]he Baptists lower the costs of favor-seeking for the bootleggers, because politicians can pose as being motivated purely by the public interest even while they promote the interests of well-funded businesses. ... [Baptists] take the moral high ground, while the bootleggers persuade the politicians quietly, behind closed doors."