Regulatory capture occurs when a government agency, created to act in the public's interest, instead advances the interests of the industry it is supposed to regulate. This can happen when regulators become too close to the companies they oversee, leading to biased decision-making that favors those companies over the public. As a result, the agency may implement rules and policies that benefit specific businesses, often at the expense of consumer safety or environmental protection. This phenomenon can undermine the effectiveness of regulations and erode public trust in institutions, highlighting the need for transparency and accountability in regulatory processes.