It IS a free market (should be MORE so), for the fact that if one company comes in and completely saturates an area with an 1800MHz band coverage, there is nothing that gives another company the right to whine to the government because they can't play in the 1800MHz range. They can develop technology to use other frequencies, spend the money themselves on towers and equipment, and provide the same kind of service on different frequencies.
If a company puts up a tower to specifically block another company's frequencies, there is a legal issue there that then falls under fair practice.
Wired communications is also a free market as well. There is nothing that prevents someone from using their own money to construct another wired infrastructure on their own set of poles.
Now, if a company deliberately cuts another phone company's phone lines to prevent them from working, again, there's a legal issue there that again falls under fair practice.
Back to the point. AT&T's iPhone was developed by Apple, and AT&T entered into an agreement with them to carry their phone on the wireless network they created with their own money. There's no legitimate reason why government should force them to allow apps on their phones and on AT&T's network that the two companies feel would be a detriment to their profit.
If google wants their app to be on a cellular network, no one is preventing google from creating their own wireless network with their own phone running their own apps.
Now, one app from google isn't going to be the downfall of the iPhone and AT&T. It would behoove both the companies to work with google and make compromises, but, as a free market, government shouldn't FORCE one company to allow another company to profit off their own infrastructure.
I heard so many times while working for competitors of AT&T about how bad AT&T is at restricting competition. I never saw it. All I saw was smaller companies whining when their own network wasn't as reliable as AT&T's because they refused to put the money and engineering into it that AT&T did. AT&T was a great scapegoat because they had the profit and the network before others did.