How do oligopolies undermine the self-regulatory features of the free enterprise system?

Oligopolies undermine the self-regulatory features of the free enterprise system by reducing competition, which leads to higher prices and less innovation. In a market dominated by a few firms, these companies can engage in collusion or tacit coordination to set prices and limit output, stifling consumer choice. Additionally, the lack of competition can result in complacency, as firms may prioritize profit over quality or service, ultimately harming consumers and the overall economy. This concentration of market power disrupts the ideal of a self-correcting market where competition drives efficiency and benefits consumers.