Is it because CAPTCHAs won’t work anymore? That sounds like a problem for sites like Twitter that have bot problems.
Is it because it may replace people’s jobs? That comes with every technological step forward and there’s always alarmist ludditism to accompany it.
Is it because bad people will use it to do bad things? Again, that comes with every new technology and that’s a law enforcement problem.
I don’t really see what the imminent danger is, just sounds like the first few big players trying to create a regulatory moat and lock out potential new upstarts. Or they’re just distracting regulators from something else, like maybe antitrust enforcement.