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I can think of a variety of things this might mean.  Is that all the context you have?  I don't think it's a universally recognized term.
I obviously know what a free market system is, in a general economic sense. I believe that I've heard it used before as an adjective to describe a law firm, but certainly not very often...  Even Google didn't give much on this usage...
My initial instinct is that it's probably most often used to refer to a firm at which new associates or summer associates have the opportunity to pursue work from different practice areas, rather than being pushed into a niche or specialization right away... that's my best guess...
Next time, if you want a comprehensive answer to a question, than make sure your question is contextually posed! What do you think this is, Dictionary.com?