So, regulations are necessary part of free markets. The question is what regulations are good and what regulations are bad.
There are empirical and game theoretical examples where regulations create better outcomes than nonviolent free market competition. There are games where the tragedy of the commons occur i.e. Nash equilibrium creates bad outcome [0]. This is also true in the real world e.g. collapse of the Atlantic northwest cod fishery.
[0] https://www.youtube.com/watch?v=6wNj9hOIt9g
[1] https://en.wikipedia.org/wiki/Collapse_of_the_Atlantic_north...