Where is such free market? Every country has laws anti-monopoly services, sanctions and other stuff that control market.
Such places have existed only briefly in time. For you are correct. Government likes to force laws upon people. I will tell you those brief times in history have been some of the most productive and innovative times in history.
Oh and as to monopoly.
Communism and Socialism are the ultimate forms of monopoly. :)
RE: My new thought on something to say to pro-communist people...