A free market doesn't guarantee a free society. Over time, people who have more political power can deny that to others, forming de-facto monarchies and serfdoms.

Don't forget that the state humanity started from was a totally free deregulated market, the consequences of which was the formation of tribes ruled by the strongest, most vicious guy and his spear-happy friends. When you don't have regulations, the person with the most power can impose their regulations.