I would argue that consolidation is the natural outcome of capitalism and growth, it will happen if there is no intervention. The fact that the growth came from "normal people" is not the most relevant thing. It merely reflects the thing going mainstream, no longer only used by nerdy early adopters. It's in inevitable consequence of growth past a certain point. Consolidation requires only that government is hands-off on a lucrative market, e.g. allowing mergers and acquisitions.
Further, I would say that these large companies use their power and influence to avoid meaningful regulation. And that they are largely unregulated now.
It is absurd to blame this current state of affairs on "government red tape".