Government at any level can make life a living hell for any business in / under their jurisdiction. As someone who works in the regulatory compliance dept. of a large company, I have seen what can happen when the smallest of the little dictators and any level of government decides he / she does not like you, the reason does not matter.
The fact is, they can tie up tons of your resources just answering information request, conducting audits, assessing monetary penalties (you don't owe it but you have to prove you don't) holding back on approvals, and on and on and on. It cost them nothing because it is all paid for by the tax payers. It can go on for years. So you win in the end, but a what cost? In the meantime the little Hitler who just doesn't like your company for whatever reason, has no fear for he / she can't be fired.
I will say in a fairness, that most government employees I have to deal with are honest hard working folks just like you and I, but I do consider myself very lucky in that regard.