I'm pretty sure the point being made is that things like this are very difficult to actually encode into law in such a way that it doesn't cause significant damage downstream. Like, take the age verification/estimation laws that are going around. We see the big companies actively encouraging it because the laws will (ironically) benefit big tech rather than harming them in any substantial manner: companies like Meta have the money and resources to implement them. But everyone who isn't a super big powerful company will be harmed because they will be unable to comply (or will find it incredibly costly to do so).