This /is/ market failure by the normal definition of market failure in the academic discipline of economics. It's not poetry. National Defence is an example of market failure. Any monopoly, eg, drinking water distribution, is an example of market failure. There is no economy anywhere on earth at any time through history up until now that has not had market failure as a feature of that economy. Not the only feature. I would say not even the major feature of the well functioning ones at least but everyone has it and tries to deal with. Is the cure worse than the disease? Is there a better cure, maybe even no cure. Most actual policy discussion in any newspaper is a discussion of just that.
Market failure is a very normal thing. What /I/ don't want is intervention where there is no market failure. What I don't want is regulation for the sake of regulation (or the sake of regulatory capture by the incumbant(s), or the sake of empire building by some public servant(s) or some witch hunt to win politcal favor at the ballot or whatever else on those lines). Regulation is the only sane response to market failure and has been since literally forever. See national defence.
That's not market failure, it's normal market functioning today. It used to be that the limits of scaling kept companies in most industries from becoming monopolies. The industries with really strong network effects, railroads, communications, and banking, were highly regulated.
Now, more industries have strong network effects. The negative effects of scale, big companies unable to get out of their own way, seem to have been conquered. Planetary-scale companies such as Walmart and McDonalds work quite well, and they're not even "tech" companies. And US antitrust enforcement has been out to lunch for 30 years now.
The European Union has a study, which I've cited before, that price competition seems to require, in practice, at least four major players. There's an implicit collusion effect that makes it more profitable to not compete on price where the number of players is small.