The name for this is crony capitalism. Policy that benefits businesses instead of policy that benefits markets. Luigi Zingales's book "A Capitalism for the People" is a good read on the subject.
Nah, there are lots of ways to get that unfair advantage. Network effects are a big one. Facebook is only facebook because everybody is on it. MS Office is only MS Office because everybody has it.
Are they superior products? Meh.
Would you particularly miss them if they were destroyed? Unlikely. Somebody just as good would come along by and by, or one of the other ones would rise to replace them.
Are you gonna pay for them anyways? Bet your ass you will.
An examination of all current and historical implementations of capitalism quickly leads to the conclusion that all capitalism eventually becomes "crony capitalism", and playing the "no true scotsman" game with regards to capitalism does not demonstrate anything meaningful.
That is patently ridiculous. The vast majority of firms that you give your dollars too have direct competitors. They may not prefer to have competitors, but neither do you when applying for jobs or bidding on a house, that is pretty basic human nature.
Are they superior products? Meh.
Would you particularly miss them if they were destroyed? Unlikely. Somebody just as good would come along by and by, or one of the other ones would rise to replace them.
Are you gonna pay for them anyways? Bet your ass you will.