Oh I know capitalism quite well, and I don't hate it irrationally, I hate it rationally. You quote competition as the great mediator. That's good, you've passed ECON101. Now let me introduce you to the course curriculum next year. In ECON102 you'll learn about market consolidation and insurance underwriting where policy prices between "competing" businesses are set by the same external force. You'll also learn about customer resistance to change and hate of paperwork, you'll learn how much you can actually keep prices higher than competitors while not losing customers who have been previously locked into a past contract. Stick with us to 3rd year and we'll discuss consumer behaviour and accepting of new price norms which reduces customer willingness to shop around as they generally lament of a time long ago where prices were cheaper under the assumption that all prices are now equally high.
That is capitalism. It's a system which in its only stable form has complete consolidation, no competition, and always tends to a monopoly since that is capitalism's ultimate goal.
Competition describes a temporary market condition (called a "perfect" market, *not* a "free" market) in capitalism, and the only way to preserve it is through very strong regulation.
You should get an economics degree, I highly recommend it. It'll open your eyes a lot.