Isn't Capitalism based on... capital? Investing in production in such a way that you increase your profit rate -- with the inevitable result being consolidation of capital, and therefore power over the means of production -- or in other words the consolidation of power?

With globalization this becomes an even more serious problem, because the entities that control the capital are extra-national. So from the joyful history of the East Inda Company to the merry state of British Petroleum today -- you have entities that cannot on the whole be held accountable to one set of laws, because no (functional) jurisdiction exist that cover their entire area of operations.

Even when regulation seemingly works, as with Microsoft, Netscape and the browser wars -- they fail. Microsoft won that one, despite loosing.