basically "higher quality" laws always make it very difficult for new players (such as your friend) to enter the market, because you have to have a whole lot of assets to start. which means there's less competition -> providers don't have to optimize on price so much -> they can get away with higher mark-ups.

the same is happening with cars, and housing. in the EU for example they require that every car have a few extra sensors (such as driving assistance, check whether the driver falls asleep, etc.). this makes manufacturing cars more expensive -> cars get more expensive. we all (everyone who buys a car) pay for this. they "improve quality" (mandatorily) at our expense.