"Well, if regulation is so good, explain the TSA."
Is the TSA regulated? It looks to me they are allowed to do whatever they like, however they like - up to violating the US Constitution.
Anyway, nobody denies there are bad (and often very bad) regulations. And sometimes too much regulations. Just, absence - or almost - of any regulation - dreaming "companies will self-regulated and customers will benefit of that" - is usually no better, especially when the "contracting power" is on one side only.
Human greed will most of the time take precedence, especially when competition is limited (but often setting up cartels is quite easy even when the players are not few).