The Watchtower of Destruction: The Ferrett's Journal - Designing For Jedi
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Designing For Jedi|
That's exactly what I was referring to by (4). Pretty soon you'd have no company bothering to innovate, since they'd have no incentive to do so. Indeed, they'd probably choose either your latter option (take their business elsewhere, assuming an elsewhere exists), or explore the option of cutting yet another hidden deal with the authority, giving them incentive to look the other way.