As far as justification, it goes the other way around. If you want to interfere in the free market, you need to provide good justification that this problem is not being created by the regulatory environment already. 99.9% of the time, it is.
To extend his point, "red tape" isn't the only regulation-related problem. Don't forget that in many local governments gave monopoly grants to select ISPs. Then there's the "bootleggers and baptists" [1] effect, where well-meaning regulation has a larger anti-competitive effect benefiting extant firms, e.g., requiring would-be ISPs to also serve cost-prohibitive rural areas.
Pretending that extant government regulation is the never the problem is just as bad as pretending it's the only problem.