You seem to think that regulation doesn't work. Luckily, we have a test case set up for us in real-life.
In the United States, consumers relied on voting with their wallets. In the European Union, regulatory agencies forced Apple to take pro-consumer moves through regulation.
Now take a look at which approach produced results and which approach left consumers continuing to complain about the lack of interoperability and the lack of competition in Apple's walled garden.