But the government was keeping it from being regulated and taxed.
By definition, when the government tells someone what they can/can't do, that is regulation.
Which one of the 2 is trying to restrict access?
If an ISP is a privately owned company, they have the right to restrict whatever the hell they want. That's what you don't get. The Internet is not a right. Yeah, we all use it, but it's not a given right at a fair price.