I would question if it's ever possible to have "free markets" at all (it's definitely not in the neoclassical sense, which relies on the assumption of everybody

I would question if it's ever possible to have "free markets" at all (it's definitely not in the neoclassical sense, which relies on the assumption of everybody having the same, perfect information of all prices). Let alone in actual societies where anything like laws exist. So I think what comes more through in that quote is more Friedman's ideology around Government intervention than any actual practical economics.