Regulation will make it worse long term; what we need is competition, which seems to be coming in the way of alternate android OS's. ~75% of China uses android, and they all use google alternatives. Huawei uses HarmonyOS, and there's no reason to believe this won't slowly make its way around the globe.
Competition doesn't work in these kinds of markets. The larger you are, the easier it is to retain your position. Social networks, app stores, things like this are desirable because of their size. They are classic monopolies and have to be regulated because the "free market of ideas" is physically incapable of doing so, because capitalism can't do this stuff properly without heavy restrictions.
Social networks are one of the most competitive spaces there are. I don't know you but I would bet my life savings that you're on multiple social networks, and you change networks depending on which add the most value to your life frequently.
What will be a massive problem is if the government says "App Stores can only have at max a 20% fee", and then to enforce this law they only allow two app stores, or it increases the barrier of entry for small players even more.
