Comment by tsimionescu

The opposite is actually true, most likely the lack of regulation is why we don't have more European hardware and software. Look at Russia and China - they have much more onerous regulation, and have large popular local services (VKontakte, WeeChat). I'm not suggesting in any way we should want to be like China and Russia, but I think they prove that regulation doesn't prevent local business springing up to compete with international behemoths.