The hope is that in a new regulatory landscape we will see the emergence of new companies. Just because the tech unicorns of the last 10-15 years, like uber and facebook, were backed on odious behavior doesn't mean that a more palatable business model won't be discovered.
Currently, honest companies that respect the user's data cannot compete with companies that try to profit as much as possible from our it.
I see this as similar to regulating pollution. Forbidding companies from cutting costs by polluting the air and the rivers allows for innovation and entrepreneurship in cleaner alternatives.
Apple can only do that because they rule their hardware platform with an iron fist.
They also position themselves as a premium product and do not / cannot compete with google in terms of price. While apple products (and iOS specially) are very popular in the US, here in Brazil you almost never see them.
How is an entrepeneur with a sense of ethics supposed to compete in the current environment? When there is no regulation, the people with less scuples are the winners, not the people with better product.
Off the top of my head, Obamacare led to the founding of Zenefits and other companies in that industry.
The EPA's exhaust regulations in the 1970s arguably birthed the catalytic converter industry.
If the regulation is costly enough or introduces sufficient compliance risk, the rise of an industry to help companies comply with it is almost inevitable.
