That being said, the regulators do tend to have the arrogance of thinking they know better than the consumer. They take non-issues on the market (charging port) and impose crappy solution (micro-usb) while the eventual better solution (usb-c) is still much worse than some of the offers on the market (Apple's lightning port).
With thinking like that we would end up with zero innovation or competition on the OS platform just to solve the "coordination problems on the market". Because who needs Mac OS or Linux, right?! Windows should've been good enough for anyone! Of course, that is why big-cos like Microsoft love that kind of regulatory thinking.
That has demonstrably not been the case in practice. Proprietary hardware components, legally encumbered "standards" and protocols, software licensing restrictions, and locking up user data are all examples of barriers to competition that are clearly bad for the market and yet have been widely and successfully employed. Typically it has required significant legal/regulatory changes to bring those barriers down, and in some cases we still haven't.
Technical standards are not adopted when they interfere with business goals. That's why we have no ubiquitous computing yet, that's why it took regulation to make a standard charging port for phones happen. Regulations are necessary to solve coordination problems on the market - the very problem that's defined by individual voluntary choices leading to bad outcomes for everyone.