> They should’ve kept their distance from the government

Can they do it if they have anything of value for that government? Eventually the government comes knocking and they have to say "no". Depending on who's in power the response can range from "fine, no lucrative contracts for you" to "you shall pay through your teeth for this". By the time you win a legal battle, which is not guaranteed with a captured justice system, the damage was done and a lesson was learned.

It's like saying no to the mob (today the comparison is as apt as it gets). You get your knees bent the wrong way, and someone else gets the payoff.