Yes. Increased regulations generally increase the size of companies and reduce the number of newcomers to the market. Industries such as pharmaceuticals, which are highly regulated, are dominated by a few very large players. While smaller companies exists, they are generally much more limited in scope (i.e. they discover, but do not make their product, or vice-versa), and are often acquired by one of the larger players when they have successful products. I can see the same thing happen with social media. Without many of the protections of Section 230, it would be very difficult to newcomers to establish. Compliance is expensive, and complying with libel law would be an especially expensive case thereof.
RE: Week 09 -- Question About Section 230