This isn’t a problem with capitalism, it’s a problem with governments. If we eliminate government entirely (e.g. anarcho-capitcapitalism), there are no regulations, thus no regulatory capture
No, in that case you would just have large existing corporations hiring hit squads to kill potential competitors instead which is obviously much better /s The desire to do what regulatory capture does originates in capitalism, not in government, government just turns it from a violent action into one of bureaucracy.
LWN had a couple of articles about it
https://lwn.net/Articles/991906/ https://lwn.net/Articles/993895/