Yes, the state can pick winners and losers. Cronyism is bad, no one is arguing to the contrary. However, that does not invalidate the merits of capitalism. 

Most people don’t fundamentally understand what capitalism is or why it’s the system that leads to the most prosperity and is morally superior. 

They just see Google paying the state to give them special privileges and cry capitalism is evils and broken.  

They are fighting a straw man the same way you seem to be. 

But we can agree to disagree