The issue of government regulation is that the departments in charge of regulating the different industries of commerce, are in turn not monitored themselves. These departments are easily bribed with lobbyists and influence political landscapes with campaign contributions. It's perfectly legal for big business to make financial contributions to specific canidates.
There is actually an entire economic concept dedicated to this known as "Regulatory Capture" or "Captive Regulation". If you want to see this in action, look no further than the GFC, large corporate entities (corporations being an "incorporation" of a business into the government) such as Goldman Sachs received massive tax breaks and bailouts whereas smaller business were still subject to high taxation rates and bankruptcy. Government intervention and regulation is to "thank" for the continued existence of large financial corporation and manufacturing corporations such as Chrysler and Morgan-Chase in the United States. The fact that only large financial organizations have first dibs to loans from central banks in almost all countries, gives them a significant advantage in terms of access to capital compared to smaller business... There are many instances, from back when government agencies were used to squash labour movements in the 19th to early 20th century.
Only a fool would actually believe that a government receiving a s*** load of donations from the private sector would be free from corrupt regulation.
In fact, a good government regulation would stop big business model to extend unlimited, especially in financial system where a bankruptcy could destabilize entire world financial system as it happened in 2008. Unfortunately, nothing has been learned and changed for good. So in my opinion USA model to make money from nothing by just creating many so called sophisticated financial product, difficult to be explained to customers, just to twist their mind to buy it, it was the path for the USA and the world financial system 2008 fall, exactly what I predicted one year earlier, in August 2007.
Big business thrives because laws, taxes and incentives established by the government have made it easy to be successful. Big business also has political clout because they donate a great deal to political campaigns and political causes. As such they have a say in the manner in which regulation of big business is handled in the United States.
Regulations hurt small business more than large corporations, I would elaborate on this more but I've said it a bunch of times so I'll simplify it. Government regulations are almost always the result of special intrest groups, regulations hurt smaller business therefore destroying competition. Competition is the biggest threat to any business.
Government regulations are not to blame for big business. Free market principles are the reasons why big business exists. Consumers demand products and companies are more than happy to deliver. Big corporations like AT&T, GE and the big three automakers thrive on creating a need for consumers. When companies do the best and provide the best products, they get huge to meet demand.
Government is the only thing preventing big business. In a laissez Faire Market big business can take over the world. The only thing preventing that is government regulation and taxation. Without regulations they have free reign to distort markets and take in massive profits. The regulations aren't even enough, we need more regulations to prevent this from happening further.