Capitalism, as distinct from just a market (let alone a free market) economy, is based on the idea that ownership creates value thus entitling the owners of capital to some fraction of it's production and to a lesser extent the idea that anyone-can/everyone-should be an owner (as opposed to a feudal system with hard line serf-lord/owner-renter separation)

Regulations, regulatory capture, corruption, market failures; that's all broadly orthogonal.