I disagree.
That might become a problem, or be a problem in places... but it's not the problem.
The primary problems (IMO) are:
(1) Influence of multinational interest. Regulation could literally half FB's EU revenue without being very radical, for example.
(2) Lack of polity. The EU parliament is a clown house and becoming worse. There is no political public discourse around it. It doesn't have power. Voters use it for experimental/protest voting. Political parties use it as a proving ground for nationally oriented politicians, and for jobs. The whole thing is dysfunctional.
(3) EU politics plays almost no role in national politics.. parliaments or governments. There's no public discourse here either.
(4) The "executive" is totally closed doors. Legislation is a part of governance, but not all of it.
(5) They don't really know what to do, and they're timid.
Blaming insufficient power, in politics, is a copout most of the time. It absolves everyone. This should be a political faux pax. Use the powers you have more effectively. Maybe then you can have more power.