The key for traditional business is they have deep pockets unlike the Tech companies. With deep pockets come deep connections into the industry to draft, propose, lobby for policies which favour the way you do business over other and enable similar companies to forge a strong hold on who enters into the market and who does not. Tech companies are not deep pockets as most are startup who went out to solve consumer challenges. Govt. are voted by the same consumers but also with the support of traditional business houses who finance campaigns.
The govt. must take a stand on helping its citizen gain better, faster and more commercially viable access to services/products. If this means they need to arm-twist traditional business houses and force them to change their ways to have a consumer centric approach. This change is more easier said than done I suppose from what we have seen. Hence the easier way round is keep the new vendors out.