Market failure is a thing with insufficient oversight/regulation. But it's just as easy to cripple something by nationalizing and over regulating it.

Take the housing market, when there was no regulations we ended up with inadequate housing and the poor being housed in terrible conditions. Now we brought in all the wrong regulations and it's no longer just the poor who are struggling. Next we'll vote for universal rent control, do nothing else and sooner or later nobody will be able to move.

Edit: and if we completely nationalize it we might end up with inadequate commie blocks for everyone.