It isn't too simple. The racketeers must be denounced and brought to trial- which takes years in Italy. So it doesn't appear all that effective. I can't see a businessman blowing the whistle just over exemption from local levies on water and such.
The Telegraph article does not mention another clause in the local law: anyone caught paying protection for commercial activities will have his license revoked.
Taken together that makes a good incentive to go street legal.