Overregulation.

http://www.theregister.co.uk/2009/09/28/motorised_crate/

They confiscated someone’s home built transportation because they have excessively restrictive laws towards what people can drive. Is there any wonder that corporations are getting so huge? There’s no way for smaller things to break through and start out if the regulations are so onerous and odious that only the large corporations can afford to follow them all. Who knows? That experiment could be the first step someone made to founding a new car company a decade or two down the road, but the legal establishment has cut it down at its very root.