[ForHackernews]

No, capitalism is supposed to involve companies competing with one another (including competing for employee talent), not colluding with their nominal competitors. That's an oligopoly or cartel and it's a market failure similar to a monopoly.

[igonvalue]

I agree with the spirit of what you're saying, but I think it's more accurate to call what you're describing a "free market" than "capitalism"; the latter does not in fact preclude market failures such as oligopolies/cartels.