Agreed - there is an appropriate amount of regulation. That amount is neither zero, nor infinite regulation. But anyone that thinks that businesses would just do the right thing if only they were free to do whatever they want hasn't read their history.
History shows that businesses only need to look after their own self-interest. With all players acting the same way, there are, in fact, many checks built-in to a free market system. Intervention is only needed for things like, businesses that attempt to cut corners in dangerous ways by, for instance, using melamine-contaminated fillers for pet and baby food, or dumping toxic waste into the rivers or air.
The worst of monopolistic abuses, regulatory capture, and cronyism are actually side-effects of a run-away regulatory bureaucracy.