Then the problem lies with democracy not with capitalism.
Capitalism is an economic system, the “first layer of problems” as you call them would be the systems we use every day and those systems have been built by the government.
What is the difference between US and Germany? Both are capitalist nations, but one is socialdemocracy and the other isn’t.
But I would argue a country with two parties isn’t really a democracy.
As long as companies are eating that they will be ok. BUT, like most tech companies, at some point they will pull a broadcom and then the alternatives will thrive.