Capitalism does not exist "for the benefit of the consumer" no more so than apples exist for the benefit of human consumption.

Free markets need not have capitalism, and vice versa, but capitalism will likely arise in any free market.

If Bob produces X, and he wants to sell X for Y dollars, how is it immoral or bad to allow others to sell X for Y dollars, but no less?

This is like saying it's "price fixing" when an app developer charges the same for his product on the play store and the App Store.

Apple did not collude with HTC; they set the price for their product.