If that's the case, that's because the people are choosing crappy politicians who let that happen. If a father of a family lets the five-year old decide where to live, what to eat, and what to buy, that doesn't mean the five-year old has the power, it just means that the father has voluntarily given the power to him. However, he could take it back whenever he felt like it.
Same thing goes for lobbyists. They would have zero power if politicians gave them zero power. If the population would be smart and informed, this wouldn't happen. So, what's happening now is totally a result of democracy, which of course is a totally ridiculous idea^1, but it's still democratic.
[1]: Let people who have absolutely no idea how to run things decide who should run things. That's like if the passengers of an airplane, having zero experience with aviation, deciding on who the captain should be.