You would be correct. To have a true capitalistic marketplace ala Adam Smith, you need government regulation to specifically break up oligopolies: companies wh

You would be correct. To have a true capitalistic marketplace ala Adam Smith, you need government regulation to specifically break up oligopolies: companies which get so large they can collude and price-fix. We call these laws anti-trust laws. In the US particularly, anti-trust laws are recklessly unenforced, leading to exactly this situation.