aren’t these kind of laws; telling a maker to make the product in a specific way, eliminating creative freedom?

In the realms of monopoly regulation, product liability, energy efficiency, or pollution emissions, to name a few examples, the objective of the law is to define a floor (read: minimum requirements) that balance competing interests. In a democratic society, the government holds the public interest in high regard, but solely focusing on just that would lead to some very strange results, some of which are too philosophical to distill into practice.

Laws on anti-competitive or unfair business practices serve to level the playing field, so that businesses cannot assert an undue advantage over competitors, often to the hindrance of a competitive market for consumers. So there are two harms: other businesses have no hope of breaking into the market, and consumers don’t get as many choices as they could have had.

The word “undue” is carrying a lot of weight, because some practices definitely assert an advantage to the disadvantage of everyone else: retaining all the good engineers is one such example, because good engineers can churn out good products, meaning other competitors have a harder time producing similarly-capable products. But that’s not an unnatural advantage, unless somehow the deck is being stacked to produce that result.

As a practical matter, flouting the law is an excellent way to get one’s products banned from the marketplace, either by mechanism of law or by alienating consumers. Take VW’s emissions scandal as an example: US State DMVs were prepared to invalidate the vehicle registrations for noncompliant automobiles already on the road, and consumers fled for other automakers, causing both the used and new prices for VW cars to drop. Many (all?) US States prohibit the sale of automobiles currently subject to a recall, with penalties for the seller. So why would anyone want to continue owning such a car, nor could they even get rid of it except by getting/using VW to buy it back.

When a government really wants to turn the screws on a nonconforming business, they absolutely have the means to do it. And it doesn’t even require a top-down regime like what’s often said about the Chinese government.