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Oh I agree. Even F Hayek in “Road to Surfdom” said that government needs to regulate certain industries (he used the example of pollution and environment ironically). Even the founding father of libertarianism knew that the “free market” is incapable of regulating some things.
I completely agree. It is often overlooked that this is core to capitalism — capitalism is a market with adequate regulation to ensure fair competition.
Imo, this is more of a Georgist position, but I could certainly see an argument for its overlap with libertarianism.