But what can a new social network do that Facebook can't? Can you do something with streaming technology that Netflix can't do?
If we knew, then we'd do it and become bigger than Facebook ;)
But suffice to say that the pattern of the electronic economy thus far has been rapid rises and rapid falls. For various reasons, it just seems to be less stable than other parts of the economy.
Regulation comes up if you can't do what others are doing. In this case, entrenched companies can find a way to add it to their services.
They need not be
unable, they may be
unwilling to do so. For example, Kodak, despite having invented the digital camera, was unwilling to enter the digital imaging market. When others did so and Kodak declined, Kodak responded with
patent lawsuits, saying, "Actually you're just using stuff we invented anyway." This didn't work, of course, and they had to sell off chunks of the company to avoid bankruptcy.
So it's not just asking for new regulations, but patent lawsuits and the like. A certain amount of that is always going on in the economy, of course, but a careful listening will hear tones of desperate pleading; large corporations are essentially communist in their outlook, and expect state support of their monopoly/oligopoly. Most Western countries do strongly support oligopolies, but there's only so much they can do.