> They won capitalism? The government regulations are entirely responsible for the lack of competition.

Capitalism isn't the absence of government regulations, you seem to have confused it with anarchism.

Capitalism is the name applied by critiics to a real world economic system existing at the time it was described based on particular structures of properry rights and the resulting class system. Government regulations systematically benefitting the dominant class is... very much one of the features widely observed to result from that system.