You are absolutely wrong, the 'biggest companies' dominate and steal from 'the little guy' today, except today they have the nuclear option in their hands already - government compliance with the wishes of the biggest companies.
Stop it with the "Absolutely" thing. That's animal thinking and you're a human. This isn't simple.
You are quite correct in the second part of your statement; We don't regulate in favor of the people; essentially we lost the war and no longer have a government of the people, (except in name). The Free Market allowed monster corps to reach cancer status, and the government is simply an extension of them. The parasites won.
Happens all the time. Human bodies are Free Market systems, and lots of us get cancer. Good health is hard without knowledge, and even then it takes work.
In principle, regulation both works and is necessary. It's a simple fact of life. You *must* regulate in human society. If you don't, the meanest man with the most guns dominates. So we regulate that situation; we organize groups to post watch at the fence. We could refrain from regulating anything, from organizing; let the Big Man win, perhaps as he ought because he's the biggest. Heck, if we didn't regulate anything, we wouldn't even have guns to worry about, because technology is entirely about regulating reality into the shapes we want.
But we're not monkeys. We're humans.
And we regulated reality into fences and gun shapes. Basic law enforcement is just more regulation of the Free Market. You must understand this, and I think you do. You're just frustrated with the bullshit state of affairs and are grappling with "What Went Wrong??".
What went wrong is that we didn't regulate properly. We didn't do enough of it in the right ways; we didn't have the necessary knowledge to keep pathogens out of our government. Nobody has yet figured out how to screen for psychopaths and greedy, self-serving assholes. Like, ever. So we see empires rise and we see them fall due to this failure. No human establishment has ever throughout history managed to sustain itself.
The Law of the Jungle, (Free Market) works fine in the Jungle, because it doesn't have to worry about abstract thinking and frontal lobe intelligence. It's just muscle and claws. But Humans are more than just muscles and claws, and unless we want to revert to being jungle animals, (no thanks; I like living in a house and having cars and computers and sail boats), we cannot pretend that we don't have intelligence. -Intelligence is ALL about regulating things; making deep choices rather than simply following the four Fs; Fight, Flight, Feed & Fuck impulses.
Maybe one day Life will work out how to use that new power without flying off the rails and destroying itself, but so far it's still working through the upgrade.
What Free Market people are feeling is anxiety about leaving behind a system which worked. The Jungle worked. But the Jungle isn't for humans anymore. We outgrew the old bedroom, grew new brain structures and moved out.