But other video providers can make sure that video and the ads placed against that video is suitable for children. I can let a 7 year old sit and watch uk ITV kids content for an hour and I know it'll be fine. I cannot do that for YouTube, because YT ignores the regulatory framework.
That framework is largely voluntary, so sure they don't _have_ to comply with it. But whenever this comes up (especially with taxes) people say "if you don't like non-compliance with voluntary regulation just change the law". And then, when the law is changed (eg, GDPR), people lose their shit and talk about how restrictive the law is.