It's the government that controls the immigration law that gives the company the authority to sponsor a visa. Of course the H1-B is mutually beneficial to both the company and the employee, that is why the program is so popular.

If H1-Bs are being abused (by hiding job openings to US citizens), or seen as unfair competition for American labor, then the government has the authority to modify or terminate the program. This thread has been primarily about exploring other paradigms for enabling immigration.