Predatory pricing is a strategy where a company sets its prices extremely low, often below cost, to drive competitors out of the market. The goal is to eliminate competition, allowing the company to raise prices later once it has gained a dominant position. This practice can harm consumers in the long run by reducing choices and increasing prices after competitors have exited. Regulatory bodies, such as the Federal Trade Commission in the United States, monitor predatory pricing because it can lead to unfair market practices. While low prices can benefit consumers initially, the long-term effects may lead to monopolistic behavior, ultimately harming the market.