Are you kidding me? In what world is the black market a free market? The entire reason it's called an "underground" market is because it can't legally operate as a free market.
By that definition, the black market is a free market. You could argue about the word 'unrestricted' but I doubt you'd change my mind.
The bakery competition is limited to people who want to run a bakery. The beer store market is limited to people who want to run beer stores.
Breaking the law obviously isn't an issue for people in drug industry.