You are technically correct, which is the best kind of correct, but I think it's pretty clear that when people say "free of government regulations" they generally mean markets free of a specific kind of regulation, namely the kind obliging anyone to buy or sell anything to anyone at any specific price. But not one free of regulations against force and fraud.
In that same vein though, I think those same people generally assume that it is also not free of government enforcement of artificially created obligations, i.e. contracts, and that's a possible point of contention. A system with maximal (to use Hohfeldian terminology) liberties and immunities is consequently one with minimal claims and powers, and while plenty of free-market advocates bang a loud drum against claims more than minimal negative claims, they seems pretty gung-ho on allowing pretty extensive arbitrary power to contract, which does not automatically come part and parcel with a system that allows only the minimal claim to property and the minimal power to trade. It's an extra thing added on top of that minimal free market system.
I think it's that power to contract where all the problems with capitalism (and many other social problems) creeps in, and though I mostly make a big noise about certain specific kinds of contracts being problematic (those involving rent and interest), I've half a mind to throw contracts out entirely. The deontological half of my mind, arguing from first principles at least; that would obviously have fairly far-reaching consequences and unlike eliminating just rent and interest, I don't quite have thorough solutions to all the problematic consequences already in mind, so deontological arguments be damned, I'm not quite sure it's a good idea just yet.