That is the fundamental philosophical problem of free markets i.e. they are never entirely free - or have not been so far. Large companies like Amazon can bend and shape regulations in a manner that serves incumbents like them and disadvantage smaller companies. They have a direct line to government and they can also carry out various technical schemes that allow them to dodge taxes - something that smaller companies can't do. So the idea that we have truly free markets is an illusion.
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I agree, free market creates what we call natural monopolies and Oligopolies . Thanks for your response.