In the same way, the government has exactly zero economic interest in a correctly regulated network. Over time, laws have a way of favoring those who are connected over those who are not... Goldman Sachs springs to mind as an example of just such behavior.
People are wholey very good creatures. But there are times when a person can become evil and that is what the government is for...
In practice, it seems government has an interest in threatening regulation in order to extract concessions (campaign contributions) from regulated groups. There is little connection between the well-being of society and the incentives facing politicians.
Large, entrenched corporations only support "free markets" insofar as it makes convenient political cover for "let us do what we want".