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If big companies like Google, Facebook, and Amazon are prevented from acquiring startups, that actually reduces competition. The reason is that if there is less M&A due to legal uncertainty, there is a reduced incentive for angels & VCs to fund those startups in the first place.
Just like SOX made IPOs hard, the wrong policy could make it hard to get acquired. And like SOX, there would be unanticipated consequences. No IPOs led to companies staying private and massive expansion of VC. Closing off bigco M&A too might mean turning to crypto for liquidity.
A regulation that purports to reduce the power of a large company frequently ends up increasing it, by erecting barriers to entry for startups. Often that barrier is licensing. In this case the barrier would be reduced access to capital.
