this law is designed to protect those companies who already made billions on abusing existing laws by making it seem like what they did was legal, a "loophole" in the law that is now "closed" for new competitors

They are not "new entrants" in the market, they have a network effect now so it will be preferable to them to sign exclusive deals with restaurants to further ensure there can not be any competition

So the alternative should be that we should continue to funnel VC money into every new predatory impersonation business?

Sometimes it really is a loophole that is now closed, and the government can’t subsequently dissolve all companies they’ve used it, they can only ask companies to stop.