Do Libertarian Ideals Ignore the Realities of Corporate Power?

If corporations can skew the market to limit competition and exploit consumers, isn’t that just another form of concentrated power? How do libertarians reconcile the idea of ‘free markets’ with the reality that unchecked corporate power often undermines them? Wouldn’t some regulation be necessary to preserve genuine market freedom?

◦ The repeal of the Glass-Steagall Act in 1999, which had separated commercial banking from investment banking since the Great Depression, is a clear example deregulation, often aligned with libertarian ideals, can lead to concentrated corporate power that distorts markets and harms the public. Its repeal allowed banks to grow into massive financial conglomerates, merging deposit banking with high-risk investment activities. This lack of separation contributed to the 2008 financial crisis, as banks took on excessive risks with little accountability, ultimately requiring taxpayer-funded bailouts. ◦ Another example is the airline industry deregulation in 1978 through the Airline Deregulation Act. Before this, the Civil Aeronautics Board (CAB) regulated routes, pricing, and competition to ensure fair practices and service to smaller markets. Deregulation removed these controls, allowing airlines to compete freely. ◦ The repeal of the Fairness Doctrine in 1987 is another example. This FCC policy required broadcasters to present contrasting views on controversial public issues, ensuring a balanced dissemination of information. Its repeal allowed for the rise of highly partisan media outlets, where networks could prioritize sensationalism and political bias over balanced reporting.