So why are government and media going after craigslist? The same reason, I think, that media and government in, for example, Germany are demonizing Google (even as the German people give Google its biggest market share anywhere in the world). They’re going after the disruptors, the biggest disruptors in sight.
Since craigslist and the internet have existed, newspaper classified revenue has fallen by $13 billion a year, leaving that money in the pockets of former advertiser-customers. Since Google and the internet have existed, many more billions have left traditional media as Google offered their former ad customers a better deal.