Final answer:
The British government restricted the EIC so little because it played a crucial role in the economy, and imposing harsh restrictions would have had negative consequences. While the EIC did have a private military force, its power was mainly centered around trade and commerce.
Step-by-step explanation:
The reason why the British government restricted the East India Company (EIC) so little was because the company played a vital role in the British economy. Restricting it too much would have harmed the economy as the EIC was responsible for a large portion of trade and wealth generation. However, it is important to note that the British government had already imposed significant restrictions on the EIC in areas such as trade goods, military actions, and trade agreements.
Although the EIC did have a private military force of sepoys, it did not directly threaten to overthrow the British government. The company's power was primarily focused on trade and economic activities, rather than political control.
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