He's actually correct. The problem is that we don't have meaningful competition in many sectors of our economy, we have industries tied up in regulatory capture (patents, copyrights, etc. overreaching, no-bid contracts, regulatory rules that benefit incumbents, etc.).
The other issue is that "true" capitalism requires complete, perfect information and zero transport costs for the consumer. I can choose from any supplier with no cost of switching, and I know the full differences between all of them. Given that that is impossible, it's impossible to have proper invisible hand capitalism here in the real world.
What we need to strive for is making sure the regulations are in place to protect the consumer against information "warfare" from the producers while simultaneously preventing corporations from abusing those regulations for their own benefit. Given the money that flows through government and corporations right now, I'm not holding out high hopes of that changing meaningfully any time soon...