Think the best argument against it is that it makes advertising less valuable, which in turn limits the how many "paid for with advertising" services will be available and how good those services will be.

Especially in a developing country where consumers ability to pay for such things is going to be limited, that will presumably deprive some margin of the population of media/services that are currently ad supported.

Second order effects.

Many advertisers may avoid advertising or lower their ad budgets. This means the tech platform makes less revenue. This means the platform and the video creator both make less revenue. This means less videos get created.

All of these happen at the population level.

I hate ads, but regulations that are for things that aren't public health (including mental health), anti-monopolization, etc. are probably bad for innovation and growth.

You have to balance regulation and over-regulation.

Its market distortionary and makes global advertisers have to customize for the local audience, some might not bother

Just a hip-shot, not a considered position. When I hear "regulation", I think "threat". Either of violence (any physical touch), or financial garnishment. So, to me, ads that last longer than five seconds do not rise to the level of threatening anyone.

But assuming that they did, the situation seems like one where there could be any number or ways of following the letter or the law, while flouting the spirit of it. I don't dare imagine the creative ways these people will come up with to make entertainment even worse than it already is. So for areas that seem to require miles and miles of caveats and very specific rule-making, my gut reaction is that the regulatory path isn't the right one until we can break down the scope into something that simple regulations can accommodate without loophole. Put more simply: if it seems like people will just find ways around the problem, my assumption is just that we're not targeting the right problem yet and we need to break it down further, if regulation is the right solution at all.

But that is pretty assumptive, so - again - it's just a first feeling. Doesn't pass my vibe check.